Say no to Yes Money loans, FSCA warns
When things look too good to be true, such as loans at 3.5% interest a year, they usually are
Don’t do any financial business with Yes Money Loan, the Financial Sector Conduct Authority (FSCA) has warned.
The regulator says Yes Money Loan is purporting to be an authorised financial services provider (FSP), which it is not.
“According to the FSCA’s records, Yes Money Loan is not an authorised FSP and is not a juristic representative of any FSP, therefore, it is not authorised to render financial services as contemplated under the Financial Advisory and Intermediary Services Act.”
According to marketing material that appears to be from Yes Money Loan, the company claims to be offering personal loans, business loans, study loans, home loans, debt consolidation loans and agricultural loans at 3.5% interest a year. With the repo rate at 6.75% and the prime rate at 10.25% a year, 3.5% would be the best interest rate on offer by any provider in the market, by a long way.
The flyer also says “blacklisted and people under debt review can apply”.
The National Credit Act (NCA) prohibits all advertisements for credit from utilising such a term, and lending to over-indebted consumers in debt review is reckless, which is also a breach of the NCA.
Consumers are often lured into loan scams by offers that are too good to be true, and once they are hooked, they’re enticed into paying upfront fees to the “lender” who asks for application or legal fees before it is willing to release to you the loan amount — which never materialises.
The NCA does not allow credit providers to request upfront payments for the release of a loan. If a credit provider makes such a request, report them to the National Credit Regulator (NCR) or the police.
According to the NCR’s directory of registrants on its website, Yes Money Loan is a registered credit provider. The NCR did not respond to a request for comment.