National Credit Regulator v 5 Star Cash Loans (Pty) Ltd (NCT/320469/2024/140(1)) [2024] ZANCT 22 (18 July 2024)

National Credit Regulator v 5 Star Cash Loans (Pty) Ltd (NCT/320469/2024/140(1)) [2024] ZANCT 22 (18 July 2024)

The Tribunal found that the respondent repeatedly contravened the National Credit Act by retaining prohibited instruments, failing to provide pre-agreement statements and quotations, failing to deliver credit agreements, and not conducting proper affordability assessments. These contraventions were deemed admitted due to the respondent's failure to oppose the application. The Tribunal held that the credit agreements in the sampled files were recklessly granted and set aside the rights and obligations of the consumers under those agreements. The Tribunal considered the statutory factors for imposing an administrative fine and determined that a fine of R100,000.00 was appropriate, rather...

Citation
[2024] ZANCT 22
Parties
Applicant: National Credit Regulator; Respondent: 5 Star Cash Loans (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
18 July 2024
Case Number
NCT/320469/2024/140(1)
Procedural Posture
Review Application / Unopposed Hearing; Judgment After Investigation and Submissions
Outcome
Application granted. The respondent was found to have contravened the National Credit Act and its regulations. Prohibited conduct declared. Recklessly granted credit agreements set aside. Administrative fine imposed.
Judges
S Hockey, N Maseti, CJ Ntsoane
Legal Topics
National Credit Act, Reckless Credit, Affordability Assessment, Prohibited Instruments, Administrative Fine
Banking and Finance Civil Procedure National Credit Act Reckless Credit Affordability Assessment Prohibited Instruments Administrative Fine

Case Brief

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Parties

National Credit Regulator

Applicant

5 Star Cash Loans (Pty) Ltd

Respondent

Procedural Posture

Review Application / Unopposed Hearing; Judgment After Investigation and Submissions

Legal Issues

  1. 1 Whether the respondent contravened sections of the National Credit Act and its regulations.
  2. 2 Whether the respondent engaged in prohibited conduct by retaining consumer identity documents and bank cards.
  3. 3 Whether the respondent failed to provide pre-agreement statements, quotations, and credit agreements as required.

Ratio Decidendi

The Tribunal found that the respondent repeatedly contravened the National Credit Act by retaining prohibited instruments, failing to provide pre-agreement statements and quotations, failing to deliver credit agreements, and not conducting proper affordability assessments. These contraventions were deemed admitted due to the respondent's failure to oppose the application. The Tribunal held that the credit agreements in the sampled files were recklessly granted and set aside the rights and obligations of the consumers under those agreements. The Tribunal considered the statutory factors for imposing an administrative fine and determined that a fine of R100,000.00 was appropriate, rather...

Court Disposition

Application granted. The respondent was found to have contravened the National Credit Act and its regulations. Prohibited conduct declared. Recklessly granted credit agreements set aside. Administrative fine imposed.

Orders

  • It is declared that the respondent contravened sections 133(1) and (2) read with section 90(2)(l); section 92(2)(a) read with regulation 28(1) and Form 20.2 and section 93(2); section 81(2)(a) read with regulation 23A(3), (5), (8), (9), (10), (12), (13), and (15); and section 81(3) read with section 81(1)(a).
  • The aforesaid contraventions are declared prohibited conduct.