National Credit Regulator v Bestvest 180 CC t/a SOMCA Cash Loans (NCT/168224/2020/57(1)) [2021] ZANCT 12 (3 June 2021)

National Credit Regulator v Bestvest 180 CC t/a SOMCA Cash Loans (NCT/168224/2020/57(1)) [2021] ZANCT 12 (3 June 2021)

The Tribunal found that the respondent repeatedly contravened multiple provisions of the National Credit Act and Regulations, including failing to display updated registration certificates and window decals, retaining prohibited instruments, failing to conduct proper affordability assessments, entering into reckless credit agreements, failing to provide pre-agreement disclosures, using non-compliant credit agreement forms, charging excessive interest and service fees, and inducing consumers to enter into unlawful supplementary agreements. The respondent did not oppose the application or attend the hearing, and the evidence demonstrated ongoing and serious breaches across all branches. The...

Citation
[2021] ZANCT 12
Parties
Applicant: National Credit Regulator; Respondent: Bestvest 180 CC t/a SOMCA Cash Loans
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
3 June 2021
Case Number
NCT/168224/2020/57(1)
Procedural Posture
Administrative Application / Default Judgment After Respondent Failed to Oppose or Attend Hearing
Outcome
Application granted. The respondent's registration as a credit provider is cancelled, an administrative fine is imposed, and further remedial orders are made.
Judges
H Alwar, T Woker, B Dumisa
Legal Topics
National Credit Act, Reckless Credit, Affordability Assessment, Administrative Fine, Credit Provider Registration, Prohibited Charges
Banking and Finance Commercial and Corporate Civil Procedure National Credit Act Reckless Credit Affordability Assessment Administrative Fine Credit Provider Registration +1 more

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Parties

National Credit Regulator

Applicant

Bestvest 180 CC t/a SOMCA Cash Loans

Respondent

Procedural Posture

Administrative Application / Default Judgment After Respondent Failed to Oppose or Attend Hearing

Legal Issues

  1. 1 Whether the respondent repeatedly contravened the National Credit Act and Regulations.
  2. 2 Whether the respondent engaged in prohibited conduct warranting deregistration as a credit provider.
  3. 3 Whether an administrative fine should be imposed on the respondent.

Ratio Decidendi

The Tribunal found that the respondent repeatedly contravened multiple provisions of the National Credit Act and Regulations, including failing to display updated registration certificates and window decals, retaining prohibited instruments, failing to conduct proper affordability assessments, entering into reckless credit agreements, failing to provide pre-agreement disclosures, using non-compliant credit agreement forms, charging excessive interest and service fees, and inducing consumers to enter into unlawful supplementary agreements. The respondent did not oppose the application or attend the hearing, and the evidence demonstrated ongoing and serious breaches across all branches. The...

Court Disposition

Application granted. The respondent's registration as a credit provider is cancelled, an administrative fine is imposed, and further remedial orders are made.

Orders

  • The respondent's registration as a credit provider is cancelled with immediate effect.
  • The respondent must pay an administrative fine of R200,000.00 into the National Revenue Fund.