National Credit Regulator v A-Z Micro Loans CC (NCT/78949/2017/57(1)) [2017] ZANCT 113 (29 September 2017)

National Credit Regulator v A-Z Micro Loans CC (NCT/78949/2017/57(1)) [2017] ZANCT 113 (29 September 2017)

The Tribunal found that the National Credit Act does not require the NCR to issue a compliance notice before referring a matter to the Tribunal for cancellation of registration. The word 'may' in section 55 confers discretion, not obligation. The Tribunal held that the Respondent was afforded the opportunity to be heard both during the investigation and at the Tribunal hearing, thus satisfying the audi alteram partem rule. The Respondent's interpretation of the Act was rejected, and the point in limine was dismissed. The Tribunal emphasized that the NCR cannot be compelled to follow a particular compliance route and retains discretion in its enforcement actions.

Citation
[2017] ZANCT 113
Parties
Applicant: National Credit Regulator; Respondent: A-Z Micro Loans CC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
29 September 2017
Case Number
NCT/78949/2017/57(1)
Procedural Posture
Review Application / Ruling on Preliminary Point in Limine
Outcome
The point in limine raised by the Respondent is dismissed. No order as to costs.
Judges
FK Manamela, Nomfundo Maseti, Andisa Potwana
Legal Topics
National Credit Act, Compliance Notice, Administrative Penalty, Reckless Lending
Banking and Finance Civil Procedure National Credit Act Compliance Notice Administrative Penalty Reckless Lending

Case Brief

Summary, issues, holding and outcome

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Parties

National Credit Regulator

Applicant

A-Z Micro Loans CC

Respondent

Procedural Posture

Review Application / Ruling on Preliminary Point in Limine

Legal Issues

  1. 1 Whether the National Credit Regulator is obliged to issue a compliance notice before referring a matter to the Tribunal for cancellation of registration.
  2. 2 Whether the Respondent's right to be heard was infringed by the absence of a compliance notice.
  3. 3 Whether the Tribunal should dismiss the point in limine raised by the Respondent.

Ratio Decidendi

The Tribunal found that the National Credit Act does not require the NCR to issue a compliance notice before referring a matter to the Tribunal for cancellation of registration. The word 'may' in section 55 confers discretion, not obligation. The Tribunal held that the Respondent was afforded the opportunity to be heard both during the investigation and at the Tribunal hearing, thus satisfying the audi alteram partem rule. The Respondent's interpretation of the Act was rejected, and the point in limine was dismissed. The Tribunal emphasized that the NCR cannot be compelled to follow a particular compliance route and retains discretion in its enforcement actions.

Court Disposition

The point in limine raised by the Respondent is dismissed. No order as to costs.

Orders

  • The point in limine raised by the Respondent is dismissed.
  • There is no order as to costs.