National Credit Regulator v AI Wena Cash Loans (Pty) Ltd (NCT-266743-2023-140(1)) [2023] ZANCT 45 (1 August 2023)

National Credit Regulator v AI Wena Cash Loans (Pty) Ltd (NCT-266743-2023-140(1)) [2023] ZANCT 45 (1 August 2023)

The Tribunal found that the respondent repeatedly contravened the National Credit Act and its regulations by failing to update its registration details, failing to pay renewal fees, granting credit while unregistered, failing to conduct proper affordability assessments, engaging in reckless lending, charging excessive interest and unlawful fees, failing to provide prescribed documentation, and including prohibited clauses in credit agreements. The respondent's conduct was deemed prohibited under section 150(a) and brought the consumer credit industry into disrepute. Credit agreements entered into after the lapse of registration were declared unlawful and void, while others were declared...

Citation
[2023] ZANCT 45
Parties
Applicant: National Credit Regulator; Respondent: AI Wena Cash Loans (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
1 August 2023
Case Number
NCT-266743-2023-140(1)
Procedural Posture
Administrative Application / Judgment and Reasons
Outcome
The application is granted. The respondent is declared to have engaged in prohibited conduct and is ordered to refund affected consumers, cease operations until registration is reinstated, appoint an independent auditor, and pay an administrative fine.
Judges
P Manzi-Ntshingila, C Sassman, S Hockey
Legal Topics
National Credit Act, Reckless Lending, Registration of Credit Provider, Affordability Assessment, Prohibited Conduct, Administrative Fine
Banking and Finance Administrative Law National Credit Act Reckless Lending Registration of Credit Provider Affordability Assessment Prohibited Conduct Administrative Fine

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Parties

National Credit Regulator

Applicant

AI Wena Cash Loans (Pty) Ltd

Respondent

Procedural Posture

Administrative Application / Judgment and Reasons

Legal Issues

  1. 1 Whether the respondent repeatedly contravened the National Credit Act and its regulations.
  2. 2 Whether the respondent engaged in prohibited conduct under section 150(a) of the Act.
  3. 3 Whether credit agreements entered into after the respondent's registration lapsed are unlawful and void.

Ratio Decidendi

The Tribunal found that the respondent repeatedly contravened the National Credit Act and its regulations by failing to update its registration details, failing to pay renewal fees, granting credit while unregistered, failing to conduct proper affordability assessments, engaging in reckless lending, charging excessive interest and unlawful fees, failing to provide prescribed documentation, and including prohibited clauses in credit agreements. The respondent's conduct was deemed prohibited under section 150(a) and brought the consumer credit industry into disrepute. Credit agreements entered into after the lapse of registration were declared unlawful and void, while others were declared...

Court Disposition

The application is granted. The respondent is declared to have engaged in prohibited conduct and is ordered to refund affected consumers, cease operations until registration is reinstated, appoint an independent auditor, and pay an administrative fine.

Orders

  • The respondent is declared to have engaged in prohibited conduct by repeatedly contravening the National Credit Act and its regulations.
  • The respondent is found to have acted with disregard for consumers' rights and brought the consumer credit industry into disrepute.