Mohibidu v African Bank Limited (NCT/63538/2016/141(1)) [2018] ZANCT 29 (29 March 2018)

Mohibidu v African Bank Limited (NCT/63538/2016/141(1)) [2018] ZANCT 29 (29 March 2018)

The Tribunal found that the applicant either failed to seek a declaration of reckless credit during the debt review process or the debt counsellor determined that none of the agreements were reckless. The magistrate's court granted a debt re-arrangement order based on the debt counsellor's recommendation, which included the relevant credit agreements. As such, the Tribunal held that it lacked jurisdiction to reconsider the issue of reckless credit, as this had already been adjudicated by the magistrate's court. The application was dismissed on the ground of lack of jurisdiction, making it unnecessary to consider the merits of the applicant's complaint or other issues raised.

Citation
[2018] ZANCT 29
Parties
Applicant: Itumeleng Mohibidu; Respondent: African Bank Limited
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
29 March 2018
Case Number
NCT/63538/2016/141(1)
Procedural Posture
Review Application / Merits Determination After Leave to Refer Granted
Outcome
Application dismissed for lack of jurisdiction.
Judges
Trevor Bailey, Maria Peenze, Hazel Devraj
Legal Topics
Reckless Credit, Debt Review, Jurisdiction of Tribunal, Affordability Assessment
Banking and Finance Civil Procedure Reckless Credit Debt Review Jurisdiction of Tribunal Affordability Assessment

Case Brief

Summary, issues, holding and outcome

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Parties

Itumeleng Mohibidu

Applicant

African Bank Limited

Respondent

Procedural Posture

Review Application / Merits Determination After Leave to Refer Granted

Legal Issues

  1. 1 Whether the Tribunal has jurisdiction to adjudicate a reckless credit complaint where the credit agreements were included in a prior debt review and debt re-arrangement order.
  2. 2 Whether the applicant is estopped from raising reckless lending before the Tribunal after the magistrate's court order.
  3. 3 Whether the respondent granted credit recklessly to the applicant in contravention of section 81 of the National Credit Act.

Ratio Decidendi

The Tribunal found that the applicant either failed to seek a declaration of reckless credit during the debt review process or the debt counsellor determined that none of the agreements were reckless. The magistrate's court granted a debt re-arrangement order based on the debt counsellor's recommendation, which included the relevant credit agreements. As such, the Tribunal held that it lacked jurisdiction to reconsider the issue of reckless credit, as this had already been adjudicated by the magistrate's court. The application was dismissed on the ground of lack of jurisdiction, making it unnecessary to consider the merits of the applicant's complaint or other issues raised.

Court Disposition

Application dismissed for lack of jurisdiction.

Orders

  • This application is dismissed.
  • There is no order as to costs.