National Credit Regulator v Chisevhe Trading Enterprise (Pty) Ltd (NCT/223352/2022/57(1)) [2022] ZANCT 45 (1 July 2022)

National Credit Regulator v Chisevhe Trading Enterprise (Pty) Ltd (NCT/223352/2022/57(1)) [2022] ZANCT 45 (1 July 2022)

The Tribunal found that the respondent repeatedly contravened multiple provisions of the National Credit Act and its regulations, including failing to conduct affordability assessments, not obtaining credit bureau reports, failing to provide pre-agreement statements and quotations, charging excessive interest rates, unlawfully retaining consumer instruments, and failing to keep and submit required records and returns. These contraventions constituted prohibited conduct under section 150(a) of the Act. The respondent's credit agreements with consumers were declared reckless and set aside. The Tribunal ordered the cancellation of the respondent's registration as a credit provider, the...

Citation
[2022] ZANCT 45
Parties
Applicant: National Credit Regulator; Respondent: Chisevhe Trading Enterprise (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
1 July 2022
Case Number
NCT/223352/2022/57(1)
Procedural Posture
Review Application / Default Judgment After Respondent Failed to File Answering Affidavit or Attend Hearing.
Outcome
Application granted. Respondent's registration as a credit provider cancelled. Credit agreements declared reckless and set aside. Administrative fine imposed. Auditor to be appointed for consumer refunds.
Judges
T Bailey, A Potwana, M Peenze
Legal Topics
Reckless Lending, Affordability Assessment, Credit Provider Registration, Administrative Fine, Prohibited Conduct, Record Keeping Requirements
Banking and Finance Civil Procedure Reckless Lending Affordability Assessment Credit Provider Registration Administrative Fine Prohibited Conduct Record Keeping Requirements

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Parties

National Credit Regulator

Applicant

Chisevhe Trading Enterprise (Pty) Ltd

Respondent

Procedural Posture

Review Application / Default Judgment After Respondent Failed to File Answering Affidavit or Attend Hearing.

Legal Issues

  1. 1 Did the respondent contravene the National Credit Act and its regulations in the granting of credit?
  2. 2 Was the respondent's conduct prohibited under section 150(a) of the Act?
  3. 3 Should the respondent's registration as a credit provider be cancelled?

Ratio Decidendi

The Tribunal found that the respondent repeatedly contravened multiple provisions of the National Credit Act and its regulations, including failing to conduct affordability assessments, not obtaining credit bureau reports, failing to provide pre-agreement statements and quotations, charging excessive interest rates, unlawfully retaining consumer instruments, and failing to keep and submit required records and returns. These contraventions constituted prohibited conduct under section 150(a) of the Act. The respondent's credit agreements with consumers were declared reckless and set aside. The Tribunal ordered the cancellation of the respondent's registration as a credit provider, the...

Court Disposition

Application granted. Respondent's registration as a credit provider cancelled. Credit agreements declared reckless and set aside. Administrative fine imposed. Auditor to be appointed for consumer refunds.

Orders

  • The respondent's registration as a credit provider is cancelled immediately.
  • The respondent's credit agreements with consumers in annexures D1 to D10 of the investigation report are declared reckless and set aside.