National Credit Regulator v A-Z Micro Loans CC (NCT/78949/2017/57(1)) [2018] ZANCT 15 (28 February 2018)

National Credit Regulator v A-Z Micro Loans CC (NCT/78949/2017/57(1)) [2018] ZANCT 15 (28 February 2018)

The Tribunal found, on a balance of probabilities, that the Respondent repeatedly contravened the National Credit Act and its Regulations by failing to conduct proper affordability assessments, charging excessive fees and costs, and failing to keep adequate records. The evidence showed that the Respondent's practices exposed consumers to over-indebtedness and reckless lending, with multiple loans granted to vulnerable consumers without proper assessment. The Respondent's submissions amounted to bare denials and did not substantively contradict the Applicant's case. The Tribunal held that these contraventions were serious, widespread, and prejudicial to consumers, warranting cancellation...

Citation
[2018] ZANCT 15
Parties
Applicant: National Credit Regulator; Respondent: A-Z Micro Loans CC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
28 February 2018
Case Number
NCT/78949/2017/57(1)
Procedural Posture
Administrative Application / Final Judgment After Hearing
Outcome
The Tribunal found the Respondent in repeated contravention of the National Credit Act and its Regulations, ordered the refund of affected consumers, imposed an administrative fine, and cancelled the Respondent's registration as a credit provider.
Judges
FK Manamela, Nomfundo Maseti, Andisa Potwana
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Administrative Penalty, Consumer Protection
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Administrative Penalty Consumer Protection

Case Brief

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Parties

National Credit Regulator

Applicant

A-Z Micro Loans CC

Respondent

Procedural Posture

Administrative Application / Final Judgment After Hearing

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act and its Regulations.
  2. 2 Whether the Respondent failed to conduct proper affordability assessments and kept inadequate records.
  3. 3 Whether the Respondent charged consumers fees and costs in excess of those permitted by the NCA.

Ratio Decidendi

The Tribunal found, on a balance of probabilities, that the Respondent repeatedly contravened the National Credit Act and its Regulations by failing to conduct proper affordability assessments, charging excessive fees and costs, and failing to keep adequate records. The evidence showed that the Respondent's practices exposed consumers to over-indebtedness and reckless lending, with multiple loans granted to vulnerable consumers without proper assessment. The Respondent's submissions amounted to bare denials and did not substantively contradict the Applicant's case. The Tribunal held that these contraventions were serious, widespread, and prejudicial to consumers, warranting cancellation...

Court Disposition

The Tribunal found the Respondent in repeated contravention of the National Credit Act and its Regulations, ordered the refund of affected consumers, imposed an administrative fine, and cancelled the Respondent's registration as a credit provider.

Orders

  • The Respondent is ordered to refund all affected consumers, past and present, who were charged excess fees or amounts exceeding the prescribed maximum allowed by the NCA, within 60 days of the judgment.
  • The Respondent must appoint an auditor at its own cost to verify and confirm accurate calculation of amounts owing to each affected consumer.