Mortgage Secured Finance (Pty) Ltd v National Credit Regulator (NCT/88262/2017/56(1)) [2018] ZANCT 123 (20 September 2018)

Mortgage Secured Finance (Pty) Ltd v National Credit Regulator (NCT/88262/2017/56(1)) [2018] ZANCT 123 (20 September 2018)

The Tribunal found that the Applicant included prohibited charges in its credit agreements, which were not permitted under sections 101 and 100(1)(d) of the National Credit Act. Documentary evidence demonstrated that these charges formed part of the total loan amount repayable by consumers. The Applicant's argument that the charges were between consumers and third parties was rejected, as the Applicant made payments to third parties on behalf of consumers and imposed these liabilities through its credit agreements. The Tribunal held that deregistration did not remedy the Applicant's prior contraventions or absolve it from refunding consumers. The compliance notice was confirmed, and the...

Citation
[2018] ZANCT 123
Parties
Applicant: Mortgage Secured Finance (Pty) Ltd; Respondent: National Credit Regulator
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
20 September 2018
Case Number
NCT/88262/2017/56(1)
Procedural Posture
Review Application / Judgment
Outcome
The compliance notice issued by the Respondent is confirmed. The Applicant is ordered to discontinue prohibited fees, submit an audit report, and refund affected consumers. No order as to costs.
Judges
D Terblanche, K Moodaliyar, T Bailey
Legal Topics
National Credit Act, Compliance Notice Review, Prohibited Fees, Credit Provider Liability, Audit and Refund
Banking and Finance Civil Procedure National Credit Act Compliance Notice Review Prohibited Fees Credit Provider Liability Audit and Refund

Case Brief

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Parties

Mortgage Secured Finance (Pty) Ltd

Applicant

National Credit Regulator

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the Applicant contravened the National Credit Act by charging prohibited fees to consumers.
  2. 2 Whether the compliance notice issued by the Respondent was valid and should be confirmed.
  3. 3 Whether the Applicant's deregistration and cessation of credit extension remedied its prior contraventions.

Ratio Decidendi

The Tribunal found that the Applicant included prohibited charges in its credit agreements, which were not permitted under sections 101 and 100(1)(d) of the National Credit Act. Documentary evidence demonstrated that these charges formed part of the total loan amount repayable by consumers. The Applicant's argument that the charges were between consumers and third parties was rejected, as the Applicant made payments to third parties on behalf of consumers and imposed these liabilities through its credit agreements. The Tribunal held that deregistration did not remedy the Applicant's prior contraventions or absolve it from refunding consumers. The compliance notice was confirmed, and the...

Court Disposition

The compliance notice issued by the Respondent is confirmed. The Applicant is ordered to discontinue prohibited fees, submit an audit report, and refund affected consumers. No order as to costs.

Orders

  • The compliance notice issued by the Respondent against the Applicant dated 12 September 2016 is confirmed.
  • The Applicant is ordered to discontinue charging consumers prohibited fees within 30 days of receipt of this order.