Viceroy takes aim at Capitec

Pretty shady M.O. but yeah agree with Frankie - they're not likely to do this unless they're quite confident.
 
crocopede said:
I moved my savings out.
I wasn't gonna until some dude in the office starting yelling and screaming he is going to lose all his money and frantically left the office.

Then i realized mass panic had begun and all bets are off. Once mass panic kicks in...
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OK, crocosheep.
 
Eskimos said:
This has honestly surprised me more than the report
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Really? I don't see any post here that is "defending" Capitec.

Eskimos said:
The logical thing would be to evaluate the information and whether it makes sense (backed by facts)
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Indeed, which I and I'm sure others who stand to lose money have already done. Only problem is there aren't any facts backing their assumption/theory that Capitec is cooking the books, zero, nada.
 
Ninja'd said:
Appeals to the lower earners who don't wanna get screwed too much by bank charges.
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It appeals to anyone who doesn't wanna get screwed too much by bank charges. Hell Capitec is the only reason the other banks even have a low cost account these days (FNB Easy, SBSA Access, ABSA Transact, Nedbank Pay-as-you-use), only problem is as soon as they see my payslip they want to con me into a much more expensive package, f-em all.
 
NarrowBandFtw said:
Not only that, African Bank got bailed out not that long ago and Saambou's clients had their deposits guaranteed. Both infinitely smaller than Capitec.
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Except you had one bank ceasing to exist and the other having a split personality with one half bandaged up and the other on life support. So while Capitec clients are probably protected, if Capitec goes down then the direct and indirect jobs are going to be wrecked with a lot of impact on the already weak economy.

NarrowBandFtw said:
Really? I don't see any post here that is "defending" Capitec.


Indeed, which I and I'm sure others who stand to lose money have already done. Only problem is there aren't any facts backing their assumption/theory that Capitec is cooking the books, zero, nada.
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For many people the lack of information would require them to take their perceived safest choice, which would be to take the money out and have it under their direct control and possession instead of leaving it under someone else control and possession. Cue in panic withdrawals.
 
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Arb question, how can Capitec be a shark lender now post NCA? I can understand a shark in a dingy place but a public bank should be slapped by the regulator.
 
Pitbull said:
Maybe it has to do with the interest rates they are using on their unsecured loans. Might be within NCA standards, still daylight robbery!
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As was my DirectAxis loan (which is a FNB company) and most other personal loans I'd guess. FNB and Nedbank CCs also right there at the top end of the permitted amount, and I have an excellent credit score.
 
supersunbird said:
As was my DirectAxis loan (which is a FNB company) and most other personal loans I'd guess. FNB and Nedbank CCs also right there at the top end of the permitted amount, and I have an excellent credit score.
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Doesn't make it any less Loan Sharkish :p

Edit: I guess the difference comes in when they do the vetting. I don't even think Capitec does any Vetting at all. They will give a Corpse a loan as long as it pays their interest rate charged :D
 
Pitbull said:
Doesn't make it any less Loan Sharkish

Edit: I guess the difference comes in when they do the vetting. I don't even think Capitec does any Vetting at all. They will give a Corpse a loan as long as it pays their interest rate charged :D
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"Vetting" is mandatory. They cannot give out loans as they please they have to work within the NCA
 
rietrot said:
"Vetting" is mandatory. They cannot give out loans as they please they have to work within the NCA
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Indeed. They did a quick vet on me when I enquired about their credit card. They would have given me a much MUCH lower credit limit than compared to what I have with Virgin Money, so I guess Virgin Money (and by extension ABSA) should also be included in this report as loan sharks then.
 
Shi said:
PSG owns a big portion of Capitec. Steinhoff owns a small portion of PSG (they sold alot recently to release liquidity).
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Still part of the steinhoff family tree, so is very possible that they share the same accounting methods.
I also never understood how capitec did not have issues with their loans, when african bank had their issues ... but maybe its just a matter of time
 
Kosmik said:
Arb question, how can Capitec be a shark lender now post NCA? I can understand a shark in a dingy place but a public bank should be slapped by the regulator.
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The issue is they are saying that Capitec is giving loans to people to refinance their debt where they are already in default.
For example, the borrower couldn't pay back the R1000 they borrowed from Capitec after a year. Then rather than writing this off and defaulting, instead Capitec is lending them a new R1000 (plus the interest so far) for another year. This means that the outstanding balances are just getting bigger, the person is getting more into debt and has no way of repaying (since they already couldn't repay the original amount). This is predatory lending/ loan shark type behaviour. It also means that Capitec will at some stage have a massive blow out if people cannot repay the inflated amounts.

If Capitec has done this, it means that their provisions would be significantly out as they were inflating earnings, without taking defaults along the way and removing poor borrowers from their books.

The SARB is saying Capitec is liquid, because of reports they've given SARB. Doesn't mean anything.

Will be interesting to see whether Capitec has been fiddling their own credit approval process in order to avoid defaults.

Viceroy is saying they're suspicious because they picked up that Capitec has the best earnings of all local banks (including global ones) and it doesn't make sense when they're lending to people that are apparently under massive economic strain, default rates should be higher than others, and otherwise offer a bank account far cheaper than any competitor. Let's see.
 
lucifir said:
Still part of the steinhoff family tree, so is very possible that they share the same accounting methods.
I also never understood how capitec did not have issues with their loans, when african bank had their issues ... but maybe its just a matter of time
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I dont know why Capitec is constantly being equated with African Bank. African Bank is pretty much a loan provider, not a bank. They dont have deposits, they dont have transaction fees from transactional banking etc etc. Capitec does. Completely different business models. /sigh
 
NarrowBandFtw said:
:crylaugh:

the best response isn't to jump in the fire with him, it is a couple of swift PK's to exorcise his demons on the spot
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Its not jumping in a fire. I just shifted my cash out of capitec. If they survive this ordeal then i go back.
I was very young but i recall some news about a bank and then that bank stopped existing in the 80s. Or was it early 90's.

Cant recall.
Either way... the quote of blah large groups of stupid people dangerous etc blah stuff. You know... internet
 
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