National Credit Regulator v Circle Way Trading 10 (Pty) Ltd (NCT/158491/2020/57(1)) [2021] ZANCT 7 (16 April 2021)

National Credit Regulator v Circle Way Trading 10 (Pty) Ltd (NCT/158491/2020/57(1)) [2021] ZANCT 7 (16 April 2021)

The Tribunal found that the Respondent repeatedly contravened multiple provisions of the National Credit Act and its Regulations by failing to conduct proper affordability assessments, granting reckless credit, charging prohibited and undisclosed fees, overcharging service fees, failing to provide pre-agreement statements and credit agreements in the prescribed form, and including unlawful provisions in its credit agreements and advertisements. The Respondent's conduct placed consumers at risk of over-indebtedness and financial harm, and demonstrated a disregard for statutory obligations. The Tribunal held that the Respondent's registration as a credit provider should be cancelled, an...

Citation
[2021] ZANCT 7
Parties
Applicant: National Credit Regulator; Respondent: Circle Way Trading 10 (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
16 April 2021
Case Number
NCT/158491/2020/57(1)
Procedural Posture
Cancellation Application / Default Judgment After Unopposed Application
Outcome
Application granted. Respondent's registration as a credit provider cancelled. Administrative fine imposed. Auditor to be appointed. Multiple interdicts and remedial orders issued.
Judges
MC Peenze, T Woker, B Dumisa
Legal Topics
National Credit Act, Reckless Credit, Affordability Assessment, Administrative Penalty, Credit Provider Registration, Unlawful Advertising
Banking and Finance Commercial and Corporate Civil Procedure National Credit Act Reckless Credit Affordability Assessment Administrative Penalty Credit Provider Registration +1 more

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Parties

National Credit Regulator

Applicant

Circle Way Trading 10 (Pty) Ltd

Respondent

Procedural Posture

Cancellation Application / Default Judgment After Unopposed Application

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act and its Regulations.
  2. 2 Whether the Respondent failed to conduct proper affordability assessments and granted reckless credit.
  3. 3 Whether the Respondent charged prohibited and undisclosed fees and overcharged service fees.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened multiple provisions of the National Credit Act and its Regulations by failing to conduct proper affordability assessments, granting reckless credit, charging prohibited and undisclosed fees, overcharging service fees, failing to provide pre-agreement statements and credit agreements in the prescribed form, and including unlawful provisions in its credit agreements and advertisements. The Respondent's conduct placed consumers at risk of over-indebtedness and financial harm, and demonstrated a disregard for statutory obligations. The Tribunal held that the Respondent's registration as a credit provider should be cancelled, an...

Court Disposition

Application granted. Respondent's registration as a credit provider cancelled. Administrative fine imposed. Auditor to be appointed. Multiple interdicts and remedial orders issued.

Orders

  • The Respondent's registration with the National Credit Regulator is cancelled.
  • The Respondent is interdicted from further breaches of the National Credit Act.