A zero-tolerance approach towards illegal lending will dismantle South Africa’s shadow economy
(Johannesburg, South Africa | 17 November 2025) The Credit Association of South Africa (CASA), has this week noted its alarm at the growing trend towards informal lending amidst the most vulnerable communities. Formerly known as MicroFinance South Africa (MFSA), CASA is the country’s largest non-bank credit provider representative body consisting of over 1 800 formally registered credit providers.
“According to our research, over 13 million South Africans are rejected access to credit every quarter,” reports Leonie van Pletzen, CEO of CASA. “This is forcing desperate consumers who cannot access formal credit into the shadow economy and into the hands of illegal lenders, and as a result many are falling into debt spirals that will most likely worsen their financial situation.”
“From individuals to informal organisations, informal lenders have infiltrated every level of society, creating an underground economy that thrives on exploitation,” she warns. “Legal and institutional reforms are absolutely crucial in order to curb the devastating impact on our communities, and our economy.”
“We commend the National Credit Regulator’s current efforts towards cracking down on unregistered microlenders,” continues van Pletzen. “We have however recognised that there is an urgent need for a bridge between regulators, credit providers and consumers.”
According to van Pletzen, the launch of CASA is a significant step forward to make credit a force for dignity, inclusion, and growth. The association continues MFSA’s success in ongoing advocacy and policy dialogue with government and regulators, including the National Credit Regulator and the National Treasury,) on behalf of its members.
“Our aim is to ensure that the practical realities and needs of the microfinance sector are considered in legislative and regulatory changes, leading to positive outcomes for the industry as a whole,” states van Pletzen. “We provide a unified platform for members to voice concerns and challenges directly to policymakers and regulators so we can highlight any potential harm to vulnerable consumers.”
CASA assists its members in staying current with legislative and regulatory changes by providing guidance, information sharing, and training on topics like the National Credit Act, responsible lending practices, and consumer protection. This ensures members operate within the legal framework, thereby protecting consumers.
“By promoting ethical lending, consumer protection, and financial inclusion, we ensure that our members provide access to financial services in a responsible manner, particularly to underserved communities in rural and urban areas,” says van Pletzen. “It is of utmost importance that we educate and protect individuals and communities who are most at risk, whilst simultaneously engaging with regulators and the credit sector.”
“CASA’s zero-tolerance approach towards illegal lending shapes our efforts to leverage community education and ease access to formal credit,” concludes van Pletzen. “This way we can create a safer, more inclusive financial environment for all South Africans.”
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About the Credit Association of South Africa (CASA)
CASA is South Africa’s leading association representing responsible and professional non-bank credit providers. CASA exists to enable credit providers to thrive and to build a sustainable credit industry that supports economic growth and financial inclusion across South Africa.
CASA brings together ethical and professional credit providers to build a fair, sustainable, and inclusive credit industry, reflecting a broader mandate and renewed purpose to serve the entire credit sector.
It is a member-based, non-profit association governed by an Annual General Meeting, an elected Board, and specialised Board Committees. CASA is registered as a Section 21 Company (1996/001116/08), with MVB Auditors as its auditors and Nedbank as its official banking partner.
About Leonie van Pletzen
Leonie van Pletzen is the Chief Executive Officer of the Credit Association of South Africa (CASA). With 15 years of experience in the industry, Leonie is recognised as a passionate advocate for ethical lending, financial inclusion, and regulatory reform. She brings a wealth of expertise in industry advocacy, corporate governance, stakeholder engagement, and sustainable development.
Leonie has played a key role in shaping policy dialogue between government, regulators, and the private sector, and is an active contributor on various national committees, including the National Credit Regulator’s Credit Industry Forum and the Banking Sector Education and Training Authority. Her leadership is defined by a commitment to protecting vulnerable consumers while ensuring the long-term sustainability of responsible credit provision in South Africa.
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