National Consumer Regulator v Ferreira (NCT/166/2008/57 (1)(P)) [2010] ZANCT 51 (10 March 2010)

National Consumer Regulator v Ferreira (NCT/166/2008/57 (1)(P)) [2010] ZANCT 51 (10 March 2010)

The Tribunal found that Mr. Ferreira, despite being registered as a debt counsellor, provided debt counselling services through FDC CC, a juristic entity, in direct contravention of the National Credit Act and his registration conditions. The evidence showed that Ferreira controlled FDC CC, structured the business to avoid statutory requirements, and placed both consumers and credit providers at risk by failing to obtain necessary consents and by charging excessive fees. The Tribunal held that the NCR's failure to join FDC CC precluded relief against the entity, but Ferreira's personal conduct justified cancellation of his registration. The Tribunal declined to pierce the corporate veil...

Citation
[2010] ZANCT 51
Parties
Applicant: National Consumer Regulator; Respondent: Petrus Martinus Ferreira
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
10 March 2010
Case Number
NCT/166/2008/57 (1)(P)
Procedural Posture
Administrative Application / Final Determination After Hearing
Outcome
Application granted in part; Mr. Ferreira's registration as a debt counsellor cancelled.
Judges
Y Carrim, B Dumisa, X May
Legal Topics
National Credit Act, Debt Counsellor Registration, Piercing Corporate Veil, Contravention of Registration Conditions, Payment Distribution Agent, Consumer Protection
Administrative Law Commercial and Corporate National Credit Act Debt Counsellor Registration Piercing Corporate Veil Contravention of Registration Conditions Payment Distribution Agent Consumer Protection

Case Brief

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Parties

National Consumer Regulator

Applicant

Petrus Martinus Ferreira

Respondent

Procedural Posture

Administrative Application / Final Determination After Hearing

Legal Issues

  1. 1 Whether Mr. Ferreira contravened the National Credit Act and his conditions of registration as a debt counsellor.
  2. 2 Whether the Tribunal should pierce the corporate veil to hold Mr. Ferreira personally liable for contraventions committed through FDC CC.
  3. 3 Whether the NCR's failure to join FDC CC as a respondent precludes relief against Mr. Ferreira.

Ratio Decidendi

The Tribunal found that Mr. Ferreira, despite being registered as a debt counsellor, provided debt counselling services through FDC CC, a juristic entity, in direct contravention of the National Credit Act and his registration conditions. The evidence showed that Ferreira controlled FDC CC, structured the business to avoid statutory requirements, and placed both consumers and credit providers at risk by failing to obtain necessary consents and by charging excessive fees. The Tribunal held that the NCR's failure to join FDC CC precluded relief against the entity, but Ferreira's personal conduct justified cancellation of his registration. The Tribunal declined to pierce the corporate veil...

Court Disposition

Application granted in part; Mr. Ferreira's registration as a debt counsellor cancelled.

Orders

  • Mr. P M Ferreira's registration as a debt counsellor is cancelled with effect from the date of this order.
  • Mr. P M Ferreira, as controlling member and managing director/CEO of FDC CC, is ordered to deliver to the NCR within 10 days a list of all past and current clients.