FSCA slaps African Bank with R700 000 penalty for misleading advertising

MSN - 16:42
In December 2023, the FSCA identified a social media advertisement that encouraged potential borrowers with the phrase “It’s not a skoloto chomi! Ke investment”. This misleading representation suggested that the personal loans on offer were investment products rather than credit facilities. Such mischaracterisation could significantly mislead customers about the nature and risks associated with the financial product.

The Financial Sector Conduct Authority (FSCA) has imposed an administrative penalty of R700 000 on African Bank due to misleading advertising that violated the Conduct Standard 3 of 2020 (Banks).

This follows an extensive investigation into the bank’s festive season social media campaign, dubbed #KeFestive, which featured misleading financial statements that could misrepresent vital information to co...
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