Student cover loan scam expos

54815,Innocent Selatlhwa,php522E.tmp.jpg, | Saturday May 13, 2017 00:00

The mouthwatering rates provided by Student Cover for over 100,000 students led to multitudes scrambling for their services. It has since turned out that Student Cover is an illegal operation, which is not recognised by Non-Bank Financial Institutions Regulatory Authority (NBFIRA). The company gives students loans of up to P1,000 at 15% interest. For the funeral cover, one could either pay P20 or P50 for P2,000 and P5,000 covers respectively.

Student Cover prides itself as leading providers of Life Cover Loans and Smart Device Purchase plan to students. This means that they should be registered with NBFIRA. “They are not registered with us. We have had an enquiry just recently from someone who was interested in signing with them. We have since instituted an investigation to establish who they are and what they do,” NBFIRA communications manager, Tapologo Kwapa said.

Kwapa said they were likely going to force them to close until they register properly. He said it was not easy to find them, as it seemed they usually meet students at their institutions to make them sign up for their services. Even though Mmegi could not get statistics of those who have used their services, their Facebook page Student International, shows that scores of students are interested in their services with a following of over 13,000 people. However, there is a worrisome trend where most students ask as to where their office is located and they respond by directing them to send messages so that they could be sent the forms to fill in. Potential clients are also warned from giving money to agents and instead deposit it into a certain FNB held account. The life cover agreement seen by Mmegi states that subscriptions are paid using debit order.

Some of those who were listed as agents on the page said they never met the management of the company. “We had a very difficult working relationship. We only spoke to our boss over the phone. As agents we used an office at the University of Botswana and she never showed up there. We have questioned them about NBFIRA before but never got answers. I ended up quitting upon realising that if there could be a problem, I would not be able to assist the clients I signed up. They have called me many times raising complaints that they were not helped timely even though they had paid some money before being granted a loan,” the agent who asked not to be named said.

In an attempt to track down the owners, Mmegi team went to visit UB Block 232, office 108 which the company claimed was its principal office which turned up to be a creative hub office for computer science students. Upon arrival, a student occupying the office expressed relief that the publication would save them from people flocking their office.

“These people have created a mess for us. They asked that we keep forms for them and they would collect here, but we kicked them out within a week upon realising that they had claimed that our office was theirs. We have never seen peace since then as dozens of students always come here to enquire about them while others complain. Even the police have been here to investigate but nobody has ever seen the woman behind this. It seems like they ripped off a lot of students as they never stop coming here looking for them stating that their phone rang unanswered,” the student lamented.

They have agents for Ba Isago University, UB, Botswana Accountancy College, Botho University, GIPS, Limkokwing University, ABM, Boitekanelo College amongst others. With the company claiming to be stationed at UB, the public affairs manager at the institution, Mhitshane Reetsang denied that they ever hosted such a company at the institution. “We have never heard of them, but since you raised it with us we will investigate the matter,” she said. Former UB student leader, Bakotelo Mmipi also said they were not aware of the company or its dealings with students.

Attempts to reach the alleged owner (name known to this publication) proved futile as the mobile phone rang unanswered for the whole week. In an attempt to verify the existence of the said woman, inside sources at the Department of National Registration said the name was non-existent in their system.

Efforts to get a comment from Central Police Station proved futile as the Station Commander Senior Superintendent Vincent Pitseetsile was said to be in a long meeting.