National Credit Regulator v Collectnet PDA (Pty) Ltd (NCT/267892/2023/55(6)) [2024] ZANCT 64 (17 October 2024)

National Credit Regulator v Collectnet PDA (Pty) Ltd (NCT/267892/2023/55(6)) [2024] ZANCT 64 (17 October 2024)

The Tribunal found, on a balance of probabilities, that the respondent failed to comply with most requirements of the compliance notice issued by the NCR. The respondent's denials were largely unsupported by evidence, and its attempts at compliance were either inadequate, misconstrued, or out of time. The respondent continued to use an unlawful bank account, failed to distribute funds within the required timeframe, inaccurately reported transactions, and did not appoint an independent service provider as required. The Tribunal concluded that these repeated contraventions constituted prohibited conduct under section 52(5)(c) read with regulation 10A(9)(a)-(g) and the respondent's...

Citation
[2024] ZANCT 64
Parties
Applicant: National Credit Regulator; Respondent: CollectNet PDA (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
17 October 2024
Case Number
NCT/267892/2023/55(6)
Procedural Posture
Compliance Notice Application / Final Judgment After Contested Hearing
Outcome
Application granted. The respondent's registration as a payment distribution agent is cancelled with immediate effect. An administrative fine of R100,000 is imposed.
Judges
S Hockey, A Potwana, CJ Ntsoane
Legal Topics
National Credit Act Compliance, Payment Distribution Agents, Trust Account Requirements, Administrative Fines, Prohibited Conduct, Registration Cancellation
Banking and Finance Administrative Law National Credit Act Compliance Payment Distribution Agents Trust Account Requirements Administrative Fines Prohibited Conduct Registration Cancellation

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Parties

National Credit Regulator

Applicant

CollectNet PDA (Pty) Ltd

Respondent

Procedural Posture

Compliance Notice Application / Final Judgment After Contested Hearing

Legal Issues

  1. 1 Did the respondent fail to comply with the compliance notice issued under section 55(1) of the National Credit Act?
  2. 2 Did the respondent repeatedly contravene section 52(5)(c) read with regulation 10A(9)(a)-(g) and its conditions of registration?
  3. 3 Is the cancellation of the respondent's registration as a payment distribution agent warranted?

Ratio Decidendi

The Tribunal found, on a balance of probabilities, that the respondent failed to comply with most requirements of the compliance notice issued by the NCR. The respondent's denials were largely unsupported by evidence, and its attempts at compliance were either inadequate, misconstrued, or out of time. The respondent continued to use an unlawful bank account, failed to distribute funds within the required timeframe, inaccurately reported transactions, and did not appoint an independent service provider as required. The Tribunal concluded that these repeated contraventions constituted prohibited conduct under section 52(5)(c) read with regulation 10A(9)(a)-(g) and the respondent's...

Court Disposition

Application granted. The respondent's registration as a payment distribution agent is cancelled with immediate effect. An administrative fine of R100,000 is imposed.

Orders

  • The respondent repeatedly contravened section 52(5)(c) read with regulation 10A(9)(a) and its conditions of registration numbers 1, 2, 4, 6, 7, 8.2, 9, 13, 17, 21, 22, and 28.
  • The above contraventions are declared prohibited conduct.