The Financial Sector Conduct Authority (FSCA) has imposed a R700,000 fine on African Bank for a misleading social media campaign that promoted a personal loan as an investment product. The campaign, known as 'Ke Festive', misrepresented the nature of the loan, violating consumer protection regulations. The FSCA identified multiple breaches of Conduct Standard 3 of 2020 regarding truthful advertising. Despite these violations, the bank cooperated with the FSCA, leading to R200,000 of the fine being suspended for future compliance. The FSCA has reiterated the importance of clear and honest advertising in maintaining consumer trust.
The FSCA urged all financial institutions to treat customers fairly and avoid misleading advertising, emphasizing that fair customer treatment is integral to public trust in the financial system.
The 'Ke Festive' campaign misrepresented a loan as an investment product, leading to the FSCA's decision to impose a R700,000 fine on African Bank.
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