Faizel Patel, Radio Islam News – 29-09-2017
Pick n Pay has told Radio Islam the motive behind their credit for food with no interest initiative is to allow people to reduce the total cost of their shopping.
The retailer has been slammed for launching a new store card, which will allow qualifying Smart Shopper customers to buy goods on credit.
Consumers will pay no interest if they settle their account in full within 55 days.
While debt counsellors and some consumers have warned that there was going to be a massive demand for this product, hugely debt-strapped consumers were going to default on these loans on a scale not seen before.
CEO of Pick n Pay, Richard van Rensburg says debt councillors who’ve warned consumers about the store cards don’t really understand what Pick n Pay is doing.
“They are also demonstrating misunderstanding for the current national credit act law. It is not legal to lend money to someone who can’t afford the credit.”
Van Rensburg says Pick n Pay is taking the fight to bigger financial institutions by introducing a credit card with lesser charges.
“We believe the credit industry is way too expensive for customers and just like Raymond Ackerman in the old days fought the oil companies and the bread cartels we are trying to fight the credit industry and suggest to them they need to drop the cost of credit and be much more responsible how they lend credit to customer.”
Van Rensburg while they are not profiting from the new store card, Pick n Pay is creating greater loyalty for customers and allowing food on credit interest free for up to 55 days.
He says a customer who are in a debt trap will not be allowed to apply or use the new store card.
0 Comments