Scammers impersonate credit providers on loan applications

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The public is warned that scammers are impersonating retail credit provider RCS Cards (Pty) Ltd and Bridge Finance CC, a microlender in Gauteng.

RCS Cards, which is part of the broader RCS Group, offers private-label and co-branded credit cards, often in partnership with retailers. It also provides personal loans and credit life insurance.

RCS is an authorised financial services provider (FSP 44481) and a registered credit provider (NCRCP 38).

Bridge Finance, which has been in business more than 20 years, provides pay-day loans. It is a registered credit provider (NCRCP 2318).

The Financial Sector Conduct Authority says individuals operating on Telegram are unlawfully using RCS and Bridge’s details on “loan application” forms.

The impersonators are not licensed under any financial sector law to provide financial products or financial services in South Africa.

Malachi Funeral

The FSCA also urges the public to be cautious when conducting financial services business with Malachi Funeral (Pty) Ltd, which is based in George in the Western Cape.

The FSCA received a complaint that Malachi Funeral was offering funeral policies without being underwritten by a licensed insurer. Malachi Funeral is not authorised by the FSCA to conduct financial services business and is not licensed by the Prudential Authority (PA) to conduct insurance business.

Without commenting on Malachi Funeral’s business or products, the FSCA said that conducting financial services business or insurance business without a licence is a criminal offence.

Advisory to the public

The FSCA urges extreme caution when approached with unsolicited investment opportunities, particularly those found on social media. To avoid financial fraud, individuals should always confirm whether a financial service provider is registered by checking the FSCA’s database.

Members of the public should always check the following:

  • That an entity or individual is authorised by the FSCA to provide financial products and services, including for providing recommendations about how to invest.
  • The category of advice the person is registered to provide, because there are instances where companies or people are registered to provide basic advice for a low-risk product but advice on far more complex and risky products.
  • That the FSP number used by the entity or individual offering financial services matches the name of the FSP on the FSCA’s database.

You can check whether an entity or person is authorised to provide financial products and services by: