National Credit Regulator v Access a Loan (Pty) Ltd (NCT/266951/2023/140(1)) [2024] ZANCT 3 (12 February 2024)

National Credit Regulator v Access a Loan (Pty) Ltd (NCT/266951/2023/140(1)) [2024] ZANCT 3 (12 February 2024)

The Tribunal found that the respondent repeatedly contravened the National Credit Act by operating as a credit provider after its registration had lapsed, failing to conduct proper affordability assessments, charging unlawful VAT and excessive service fees, inducing consumers to enter into unlawful supplementary agreements, and failing to submit required statutory returns. The respondent's conduct constituted prohibited conduct and reckless lending. The Tribunal declared the respondent's credit agreements with consumers in the sampled files as reckless, set aside the consumers' rights and obligations under those agreements, ordered refunds of unlawful charges, interdicting future...

Citation
[2024] ZANCT 3
Parties
Applicant: National Credit Regulator; Respondent: Access a Loan (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
12 February 2024
Case Number
NCT/266951/2023/140(1)
Procedural Posture
Administrative Application / Final Judgment
Outcome
Application granted. The respondent is found to have repeatedly contravened the National Credit Act, committed prohibited conduct, and entered into reckless credit agreements. Remedial orders and an administrative fine are imposed.
Judges
S Mbhele, A Potwana, C.J Ntsoane
Legal Topics
National Credit Act, Credit Provider Registration, Reckless Lending, Affordability Assessment, Administrative Fine, Prohibited Conduct
Banking and Finance Administrative Law National Credit Act Credit Provider Registration Reckless Lending Affordability Assessment Administrative Fine Prohibited Conduct

Case Brief

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Parties

National Credit Regulator

Applicant

Access a Loan (Pty) Ltd

Respondent

Procedural Posture

Administrative Application / Final Judgment

Legal Issues

  1. 1 Whether the respondent contravened the National Credit Act by operating as an unregistered credit provider.
  2. 2 Whether the respondent failed to conduct proper affordability assessments and maintain required records.
  3. 3 Whether the respondent charged unlawful VAT and excessive service fees.

Ratio Decidendi

The Tribunal found that the respondent repeatedly contravened the National Credit Act by operating as a credit provider after its registration had lapsed, failing to conduct proper affordability assessments, charging unlawful VAT and excessive service fees, inducing consumers to enter into unlawful supplementary agreements, and failing to submit required statutory returns. The respondent's conduct constituted prohibited conduct and reckless lending. The Tribunal declared the respondent's credit agreements with consumers in the sampled files as reckless, set aside the consumers' rights and obligations under those agreements, ordered refunds of unlawful charges, interdicting future...

Court Disposition

Application granted. The respondent is found to have repeatedly contravened the National Credit Act, committed prohibited conduct, and entered into reckless credit agreements. Remedial orders and an administrative fine are imposed.

Orders

  • The respondent is declared to have repeatedly contravened specified sections and regulations of the National Credit Act.
  • The respondent's credit agreements with consumers in annexures G1 to G10 are declared reckless; consumers' rights and obligations under those agreements are set aside.