National Credit Regulator v Bambanani Brokers II CC (NCT/147392/2019 140(1)) [2021] ZANCT 20 (2 July 2021)

National Credit Regulator v Bambanani Brokers II CC (NCT/147392/2019 140(1)) [2021] ZANCT 20 (2 July 2021)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, specifically by not obtaining credit bureau reports within seven days prior to entering into new credit agreements with consumers. The evidence showed that all sampled agreements were new credit agreements, not mere amendments, and thus required strict compliance with Regulation 23A. The Respondent failed to retain and produce required documentation supporting affordability assessments and did not submit prescribed statutory returns timeously. The Tribunal rejected the Respondent's argument that fresh credit bureau reports were unnecessary for...

Citation
[2021] ZANCT 20
Parties
Applicant: National Credit Regulator; Respondent: Bambanani Brokers II CC trading as Bambanani Cash Loans
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
2 July 2021
Case Number
NCT/147392/2019 140(1)
Procedural Posture
Review Application / Final Judgment and Order After Contested Hearing
Outcome
The Respondent was found guilty of repeatedly contravening the National Credit Act and related regulations. The Tribunal declared the conduct prohibited, declared specified credit agreements reckless, interdicted further breaches, ordered the appointment of an independent auditor, and imposed an administrative fine.
Judges
MC Peenze, P Beck, A Potwana
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Administrative Fine, Credit Provider Registration, Consumer Protection
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Administrative Fine Credit Provider Registration Consumer Protection

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Parties

National Credit Regulator

Applicant

Bambanani Brokers II CC trading as Bambanani Cash Loans

Respondent

Procedural Posture

Review Application / Final Judgment and Order After Contested Hearing

Legal Issues

  1. 1 Did the Respondent repeatedly contravene the National Credit Act by failing to conduct proper affordability assessments before granting credit agreements?
  2. 2 Did the Respondent enter into reckless credit agreements with consumers as defined by the Act?
  3. 3 Did the Respondent fail to retain and produce required documentation supporting affordability assessments?

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, specifically by not obtaining credit bureau reports within seven days prior to entering into new credit agreements with consumers. The evidence showed that all sampled agreements were new credit agreements, not mere amendments, and thus required strict compliance with Regulation 23A. The Respondent failed to retain and produce required documentation supporting affordability assessments and did not submit prescribed statutory returns timeously. The Tribunal rejected the Respondent's argument that fresh credit bureau reports were unnecessary for...

Court Disposition

The Respondent was found guilty of repeatedly contravening the National Credit Act and related regulations. The Tribunal declared the conduct prohibited, declared specified credit agreements reckless, interdicted further breaches, ordered the appointment of an independent auditor, and imposed an administrative fine.

Orders

  • The Respondent is found guilty of repeatedly contravening Sections 81(2)(a)(ii) and (iii) read with Regulation 23A; Section 81(3) read with Section 80(1)(a); Section 170 read with Regulation 55(1)(b)(vii); Regulation 64 and 66 and Section 52(5)(c) read with condition A3 of its registration conditions; and Section...
  • The Respondent's conduct is declared prohibited conduct in terms of Section 150(a) of the Act.