National Credit Regulator v Aristoscan CC t/a JMK Cash Loans (NCT/128380/2019/140(1)) [2019] ZANCT 103 (1 July 2019)

National Credit Regulator v Aristoscan CC t/a JMK Cash Loans (NCT/128380/2019/140(1)) [2019] ZANCT 103 (1 July 2019)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by extending credit while unregistered, failing to conduct affordability assessments, charging excessive interest rates, retaining consumer bank and SASSA cards and PINs as security, and failing to provide required pre-agreement disclosures and credit agreements in the prescribed format. The Respondent's conduct was ongoing and serious, affecting vulnerable consumers and resulting in financial loss and privacy violations. The Tribunal held that the requirements for a default judgment were met, as the Respondent was properly served and failed to respond. Given the gravity and extent of the contraventions,...

Citation
[2019] ZANCT 103
Parties
Applicant: National Credit Regulator; Respondent: Aristoscan CC t/a JMK Cash Loans
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
1 July 2019
Case Number
NCT/128380/2019/140(1)
Procedural Posture
Administrative Application / Default Judgment
Outcome
Application granted; Respondent found to have engaged in prohibited conduct and ordered to pay an administrative fine and appoint an auditor for consumer refunds.
Judges
M. Nkomo, P. Beck, M. Peenze
Legal Topics
National Credit Act, Prohibited Conduct, Administrative Fine, Affordability Assessment, Unregistered Credit Provider, Excessive Interest
Banking and Finance Civil Procedure National Credit Act Prohibited Conduct Administrative Fine Affordability Assessment Unregistered Credit Provider Excessive Interest

Case Brief

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Parties

National Credit Regulator

Applicant

Aristoscan CC t/a JMK Cash Loans

Respondent

Procedural Posture

Administrative Application / Default Judgment

Legal Issues

  1. 1 Whether the Respondent engaged in prohibited conduct by repeatedly contravening the National Credit Act.
  2. 2 Whether the Respondent extended credit while unregistered as a credit provider.
  3. 3 Whether the Respondent failed to conduct proper affordability assessments.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by extending credit while unregistered, failing to conduct affordability assessments, charging excessive interest rates, retaining consumer bank and SASSA cards and PINs as security, and failing to provide required pre-agreement disclosures and credit agreements in the prescribed format. The Respondent's conduct was ongoing and serious, affecting vulnerable consumers and resulting in financial loss and privacy violations. The Tribunal held that the requirements for a default judgment were met, as the Respondent was properly served and failed to respond. Given the gravity and extent of the contraventions,...

Court Disposition

Application granted; Respondent found to have engaged in prohibited conduct and ordered to pay an administrative fine and appoint an auditor for consumer refunds.

Orders

  • The Respondent is declared to have engaged in prohibited conduct by contravening sections 40(3), 81(2), 81(3), 133(1) and (2), 100(1)(c), 101(1)(c) and (d)(ii), 92, and 93(2) of the National Credit Act.
  • The Respondent is interdicted and refrained from further contraventions of the Act as outlined.