National Credit Regulator v City Finance (NCT/22130/2015/55(6) NCA) [2015] ZANCT 14 (2 July 2015)

National Credit Regulator v City Finance (NCT/22130/2015/55(6) NCA) [2015] ZANCT 14 (2 July 2015)

The Tribunal found that City Finance failed to comply with the compliance notice issued by the National Credit Regulator, as evidenced by continued publication of advertisements containing prohibited terminology on its website after the notice was issued. In the absence of any answering affidavit from the respondent, the allegations of non-compliance and prohibited conduct were deemed admitted. The Tribunal held that the respondent's conduct constituted prohibited conduct under section 76(4) read with regulation 21(6)(b) of the National Credit Act. The Tribunal was satisfied that service of the application was properly effected and that a default order was appropriate. However, as no...

Citation
[2015] ZANCT 14
Parties
Applicant: National Credit Regulator; Respondent: City Finance
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
2 July 2015
Case Number
NCT/22130/2015/55(6) NCA
Procedural Posture
Compliance Enforcement Application / Default Judgment After Respondent Failed to File Answering Affidavit
Outcome
Application granted. Respondent's conduct declared prohibited and interdicted. No order as to costs.
Judges
H Devraj, D Terblanche, J Simpson
Legal Topics
National Credit Act, Compliance Notice, Prohibited Conduct, Advertising Regulation
Banking and Finance Civil Procedure National Credit Act Compliance Notice Prohibited Conduct Advertising Regulation

Case Brief

Summary, issues, holding and outcome

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Parties

National Credit Regulator

Applicant

City Finance

Respondent

Procedural Posture

Compliance Enforcement Application / Default Judgment After Respondent Failed to File Answering Affidavit

Legal Issues

  1. 1 Whether the respondent failed to comply with the compliance notice issued under section 55(1) of the National Credit Act.
  2. 2 Whether the respondent's advertising conduct constituted prohibited conduct under section 76(4) read with regulation 21(6)(b) of the National Credit Act.
  3. 3 Whether the Tribunal should declare the respondent's conduct prohibited and interdict further contravention.

Ratio Decidendi

The Tribunal found that City Finance failed to comply with the compliance notice issued by the National Credit Regulator, as evidenced by continued publication of advertisements containing prohibited terminology on its website after the notice was issued. In the absence of any answering affidavit from the respondent, the allegations of non-compliance and prohibited conduct were deemed admitted. The Tribunal held that the respondent's conduct constituted prohibited conduct under section 76(4) read with regulation 21(6)(b) of the National Credit Act. The Tribunal was satisfied that service of the application was properly effected and that a default order was appropriate. However, as no...

Court Disposition

Application granted. Respondent's conduct declared prohibited and interdicted. No order as to costs.

Orders

  • Respondent's conduct, as described in the compliance notice, is declared prohibited in terms of the National Credit Act.
  • Respondent is interdicted from continuing with the prohibited conduct.