National Credit Regulator v Circle Way Trading 10 (Pty) Ltd trading as Circle Finance (NCT/112899//2018/57(1)) [2019] ZANCT 24 (13 March 2019)

National Credit Regulator v Circle Way Trading 10 (Pty) Ltd trading as Circle Finance (NCT/112899//2018/57(1)) [2019] ZANCT 24 (13 March 2019)

The Tribunal found that the parties had reached a settlement agreement resolving the disputes arising from the Respondent's contraventions of the National Credit Act. The Respondent admitted to certain breaches and undertook to rectify them, including refunding consumers and appointing an auditor. The Tribunal required amendments to the settlement agreement to ensure compliance with the law, specifically that auditors cannot make findings of reckless lending. Upon agreement to these amendments, the Tribunal confirmed the settlement agreement as an order, finding that the relief sought by the Applicant had been resolved by agreement and that no further order for costs was warranted.

Citation
[2019] ZANCT 24
Parties
Applicant: National Credit Regulator; Respondent: Circle Way Trading 10 (Pty) Ltd trading as Circle Finance
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
13 March 2019
Case Number
NCT/112899//2018/57(1)
Procedural Posture
Review Application / Settlement Judgment After Hearing
Outcome
Settlement agreement confirmed as an order of the Tribunal; no order as to costs.
Judges
M Nkomo, T Woker, B Dumisa
Legal Topics
National Credit Act, Affordability Assessment, Prohibited Conduct, Administrative Penalty, Credit Provider Registration
Banking and Finance Civil Procedure National Credit Act Affordability Assessment Prohibited Conduct Administrative Penalty Credit Provider Registration

Case Brief

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Parties

National Credit Regulator

Applicant

Circle Way Trading 10 (Pty) Ltd trading as Circle Finance

Respondent

Procedural Posture

Review Application / Settlement Judgment After Hearing

Legal Issues

  1. 1 Whether the Respondent contravened sections of the National Credit Act and associated Regulations.
  2. 2 Whether the Respondent failed to conduct proper affordability assessments and keep adequate records.
  3. 3 Whether excessive interest was charged to consumers in violation of the NCA.

Ratio Decidendi

The Tribunal found that the parties had reached a settlement agreement resolving the disputes arising from the Respondent's contraventions of the National Credit Act. The Respondent admitted to certain breaches and undertook to rectify them, including refunding consumers and appointing an auditor. The Tribunal required amendments to the settlement agreement to ensure compliance with the law, specifically that auditors cannot make findings of reckless lending. Upon agreement to these amendments, the Tribunal confirmed the settlement agreement as an order, finding that the relief sought by the Applicant had been resolved by agreement and that no further order for costs was warranted.

Court Disposition

Settlement agreement confirmed as an order of the Tribunal; no order as to costs.

Orders

  • The settlement agreement entered into between the parties, as amended and attached as Annexure A, is made an order of the Tribunal.
  • No order is made for costs against any party.