National Credit Regulator v Abrahams (NCT/132322/2019/57(1)) [2020] ZANCT 5 (26 February 2020)

National Credit Regulator v Abrahams (NCT/132322/2019/57(1)) [2020] ZANCT 5 (26 February 2020)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and Regulations by failing to update his registration details, allowing unregistered persons to provide debt counselling services, failing to personally conduct assessments of over-indebtedness, not adhering to prescribed timelines, failing to refer matters to court or Tribunal, and charging fees not in accordance with the Act or fee guidelines. The Respondent's conduct adversely affected consumers, who were denied the protection of the debt review process and suffered financial loss. The Tribunal held that the Respondent's registration as a debt counsellor should be cancelled, an independent audit of...

Citation
[2020] ZANCT 5
Parties
Applicant: National Credit Regulator; Respondent: Rudowyn Roberto Abrahams
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
26 February 2020
Case Number
NCT/132322/2019/57(1)
Procedural Posture
Review Application / Judgment and Reasons
Outcome
Application granted. Respondent's registration as a debt counsellor cancelled. Administrative fine imposed. Orders for audit, refunds, surrender of files, and reimbursement of complainants granted.
Judges
H Alwar, A Potwana, J Simpson
Legal Topics
Debt Counsellor Registration, Contravention of National Credit Act, Administrative Fine, Fee Guidelines, Failure to Refer Matters, Unregistered Persons Providing Services
Banking and Finance Civil Procedure Debt Counsellor Registration Contravention of National Credit Act Administrative Fine Fee Guidelines Failure to Refer Matters Unregistered Persons Providing Services

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Parties

National Credit Regulator

Applicant

Rudowyn Roberto Abrahams

Respondent

Procedural Posture

Review Application / Judgment and Reasons

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act and Regulations.
  2. 2 Whether the Respondent should be de-registered as a debt counsellor.
  3. 3 Whether an administrative penalty should be imposed on the Respondent.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and Regulations by failing to update his registration details, allowing unregistered persons to provide debt counselling services, failing to personally conduct assessments of over-indebtedness, not adhering to prescribed timelines, failing to refer matters to court or Tribunal, and charging fees not in accordance with the Act or fee guidelines. The Respondent's conduct adversely affected consumers, who were denied the protection of the debt review process and suffered financial loss. The Tribunal held that the Respondent's registration as a debt counsellor should be cancelled, an independent audit of...

Court Disposition

Application granted. Respondent's registration as a debt counsellor cancelled. Administrative fine imposed. Orders for audit, refunds, surrender of files, and reimbursement of complainants granted.

Orders

  • The Respondent's registration as a debt counsellor is cancelled with immediate effect.
  • The Respondent must appoint an independent auditor within 30 business days to audit all consumer files.