Mpungane v Addcon (Pty) Ltd and Others (NCT/289/2009/138(1) (P)) [2010] ZANCT 48 (6 May 2010)

Mpungane v Addcon (Pty) Ltd and Others (NCT/289/2009/138(1) (P)) [2010] ZANCT 48 (6 May 2010)

The Tribunal found that the interest rate charged by Capitec Bank Limited in the consent order exceeded the maximum permissible rate under the National Credit Act and its regulations. The applicable formula indicated a maximum allowable rate of 34.30 percent, while the consent agreement stipulated 37 percent per annum. As the interest rate was in excess of the statutory limit, the Tribunal refused to grant the consent order. The matter was referred to the National Credit Regulator to investigate whether Capitec Bank Limited engaged in prohibited conduct.

Citation
[2010] ZANCT 48
Parties
Applicant: Thembinkosi Christopher Mpungane; Respondent: Addcon (Pty) Ltd; Respondent: Capitec Bank Limited; Respondent: Edgars a division of Edcon (Pty) Ltd; Respondent: Value Furnishers
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
6 May 2010
Case Number
NCT/289/2009/138(1) (P)
Procedural Posture
Consent Order Application / Application for Consent Order Under Section 86(8) and Section 138 of the National Credit Act
Outcome
Application for consent order refused. Matter referred to the National Credit Regulator for investigation.
Judges
T Woker
Legal Topics
National Credit Act, Debt Restructuring, Interest Rate Regulation, Prohibited Conduct, Consumer Protection
Banking and Finance Civil Procedure National Credit Act Debt Restructuring Interest Rate Regulation Prohibited Conduct Consumer Protection

Case Brief

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Parties

Thembinkosi Christopher Mpungane

Applicant

Addcon (Pty) Ltd

Respondent

Capitec Bank Limited

Respondent

Edgars a division of Edcon (Pty) Ltd

Respondent

Value Furnishers

Respondent

Procedural Posture

Consent Order Application / Application for Consent Order Under Section 86(8) and Section 138 of the National Credit Act

Legal Issues

  1. 1 Whether the interest rate charged by Capitec Bank Limited in the consent order exceeds the maximum prescribed by the National Credit Act.
  2. 2 Whether the consent order application should be granted given the interest rate issue.
  3. 3 Whether the matter should be referred to the National Credit Regulator for investigation of prohibited conduct.

Ratio Decidendi

The Tribunal found that the interest rate charged by Capitec Bank Limited in the consent order exceeded the maximum permissible rate under the National Credit Act and its regulations. The applicable formula indicated a maximum allowable rate of 34.30 percent, while the consent agreement stipulated 37 percent per annum. As the interest rate was in excess of the statutory limit, the Tribunal refused to grant the consent order. The matter was referred to the National Credit Regulator to investigate whether Capitec Bank Limited engaged in prohibited conduct.

Court Disposition

Application for consent order refused. Matter referred to the National Credit Regulator for investigation.

Orders

  • The application for a consent order is refused.
  • The matter is referred to the National Credit Regulator to investigate possible prohibited conduct by Capitec Bank Limited.