National Credit Regulator v Chetty (NCT/264621/2023/137(1)(d)) [2024] ZANCT 5 (8 March 2024)

National Credit Regulator v Chetty (NCT/264621/2023/137(1)(d)) [2024] ZANCT 5 (8 March 2024)

The Tribunal found that the respondent, while registered as a debt counsellor, received R208,000.00 directly from the complainant to settle debt obligations that were re-arranged under a magistrate's court order. This conduct contravened section 52(5)(c) of the National Credit Act, read with regulation 11 and condition B1, which prohibit debt counsellors from receiving and distributing such payments. The respondent further failed to settle the Absa account, overstated outstanding balances, and did not account for the funds received, thereby failing to comply with conditions A1 and A2 requiring professional and reasonable conduct. The respondent's actions were unprofessional, exploited the...

Citation
[2024] ZANCT 5
Parties
Applicant: National Credit Regulator; Respondent: Presley Chetty
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
8 March 2024
Case Number
NCT/264621/2023/137(1)(d)
Procedural Posture
Review Application / Default Hearing; Application for Declaration of Prohibited Conduct
Outcome
Application granted; respondent's conduct declared prohibited under the National Credit Act.
Judges
N Maseti, S Hockey, Z Ntuli
Legal Topics
National Credit Act, Debt Counselling, Prohibited Conduct, Conditions of Registration
Commercial and Corporate National Credit Act Debt Counselling Prohibited Conduct Conditions of Registration

Case Brief

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Parties

National Credit Regulator

Applicant

Presley Chetty

Respondent

Procedural Posture

Review Application / Default Hearing; Application for Declaration of Prohibited Conduct

Legal Issues

  1. 1 Whether the respondent contravened section 52(5)(c) of the National Credit Act by receiving and distributing payments from a consumer whose credit obligations were re-arranged under a court order.
  2. 2 Whether the respondent failed to comply with the conditions of registration as a debt counsellor, including professional and reasonable conduct.
  3. 3 Whether the respondent's conduct constitutes prohibited conduct under the National Credit Act.

Ratio Decidendi

The Tribunal found that the respondent, while registered as a debt counsellor, received R208,000.00 directly from the complainant to settle debt obligations that were re-arranged under a magistrate's court order. This conduct contravened section 52(5)(c) of the National Credit Act, read with regulation 11 and condition B1, which prohibit debt counsellors from receiving and distributing such payments. The respondent further failed to settle the Absa account, overstated outstanding balances, and did not account for the funds received, thereby failing to comply with conditions A1 and A2 requiring professional and reasonable conduct. The respondent's actions were unprofessional, exploited the...

Court Disposition

Application granted; respondent's conduct declared prohibited under the National Credit Act.

Orders

  • The respondent contravened section 52(5)(c) read with regulation 11 and condition B1 of the conditions of registration.
  • The respondent contravened section 52(5)(c) read with conditions A1 and A2 of the conditions of registration.