Anyone left to argue? Rudco liquidated, CLIENTS LOSE MONEY

It’s peaceful around here this morning. I’m in Stellenbosch running a financial modelling course for the Faculty and Institute of Actuaries, in conjunction with the Actuarial Society of South Africa. The sun is shining, the skies are blue and although the wind is getting up, it is still a pleasant day. But that has nothing to do with why it’s quiet.

Why Rudco has always been a bad idea

Some commentors on previous posts about Rudco suggested that there was no risk to dealing with Rudco. As some background, Rudco has been offering fixed-rate home loans at 6% per annum, often to borrowers who have already been blacklisted. My initial posts highlighted how lending money, long-term at a fixed rate of 6% per annum doesn’t make any sense from an economic perspective. Hence, the business is non-viable, and thus borrowers should stay away.

How borrowers could and did lose money

It since emerged that “borrowers” were required to pay fees and instalments to Rudco before receiving their loan. Now if that doesn’t ring warning bells, I don’t know what will.

Rudco liquidated and clients lose money

Now to put this story to bed, since I would rather move on to more interesting risk, optimisation and value generation stories and ideas. Yesterday, the National Credit Regulator succesfully obtained an order from the High Court to place Rudco into liquidation. This was a direct result of not having met the 6 December 2007 date for an independent audit report (pdf from NCR website) outlining that they did in fact have the money to provide the loans, and to refund the money received from clients before they were granted their loans. Who knows if there is any money available to refund these clients.

Which finally settles the questions about Rudco. I’m just amazed at how some commentors were still pushing Rudco as recently as Wednesday. At one stage it was suggested that I have a personal vendetta against Rudco (I really don’t care about them). I wonder what the motivation of these blinkered commentors was?

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.

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  1. Well Well,
    i am sure there are plenty people out there eating their words at the moment.
    I just hope the Rudi Visagie is brought to book.
    Dodge very dodge.

  2. While recently applying for a home loan, I too was lured by the prospect of paying only 6% interest. This was offerred to me no more than a week ago.

    The offer seemed “too good to be true” and as a result the associated warning bells went off and I started to do some research. A huge thank you to David and all the other contributors who’ve provided the public at large with insightful, well informed and above all objective (in my opinion at least) arguments. I’ve found the comments on this site invaluable.

    Once again, another old addage holds true, “where there’s smoke, there’s fire!”
    Keep up the good work…

  3. David, thanks for your valuable input. We have saved a lot of money due to your comments.

  4. What will happen to the people who have taken up bonds with them?

  5. Chantelle – I don’t know how the process continues from here. As “they” say, IANAL (I am not a lawyer) but my instinct would be to make sure you don’t do anything unilaterally that could end you up in trouble.

  6. I submitted many bonds and got no return.Rudie must rot in jail,He lied to so many clients,can anyone update the whereabouts to what is the latest in his fraud case?Has he been arrested? He is still walking around in his Edgemead flat full of smiles,if you want his address then let me know,hes busy spending the clients money!

  7. Rudie Visagie home address isB112 Salvatore Square,Letchworth Drive Edgemead,cape Town. Apparently his furniture is worth a fortune<why hasnt it been uplifted yet?

  8. they owe us alot of money to however no respond is reiceived from their laywer or themselves…….I give up a expencive lesson to learn….I will never trust anyone again

  9. Rudi Visagie has planned evrything very well. His intention was to generate a huge book of clients who apllied fr bonds. He then wanted to sell it if he had about fifty thousand poepl. SO he had about twenty agents working for him. It would have been a national organisation within six months. By this time he was hoping to haveat least fifty thousand clients that he wanted to sell to one of the big financial institutions.SOmthing similar to what happened with Sanlam having to sell their book. Imagine what would have happened with the markets of today???????He believes he is a genius and knows ways to work around systems.

  10. Our company was also approached to do bussiness with Mr Visagie’s new company , which is now called Better Life. Our clients would get Loans from them and on final approval would have to pay R5700.00, on enquiring about their company eg contact no’s , name of directors, physical address ect we were continuously stonewalled and eventualy given the name of their “attornies”(who had no knowledge of them) and their buss address in Blouberg Str(they are merely renting desk space).So my advise to anyone wanting to do buss with Better Life is, DONT GO THERE!!!!!!

  11. Someone approached me and i’ve checked the name “Better Life” and is not registered with Cipro. Can someone explain to me how can someone operate with people’s money without him registered with Tax and Ck doc. what will happen to his workers? what is South Africa doing with this kind of people?

  12. I actually learnt that they were getting liquidated after i paid the R5,700 and i was contacted by Planet Administrators who were appointed as the liquidators. It’s been a year since i last heard from them. Does anyone know what the latest is.

    Phillip from Pretoria

  13. Is Rudie’s real name “Rudolph Visagie” and is he involved with Grande Properties?

  14. The same rudi is reported to have been given land that belongs to the gvt in eerster river to develop with authur brown as a financier. They will be doing the samething they did previously. This country is full of crooks

  15. The advice i can give is to contact Dosto Noge-SPEAK OUT urgently to expose those who mesmerise your hard earned money. Its actually true that those who have it all take away from those who do not have at all.

    NB: Some officials are definitetly involve in this scam. watch out.

    something has to be done.Our government please help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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