National Credit Regulator v Engelbrecht (NCT/243378/2022/140(1)) [2023] ZANCT 12 (1 February 2023)

National Credit Regulator v Engelbrecht (NCT/243378/2022/140(1)) [2023] ZANCT 12 (1 February 2023)

The Tribunal found, on the uncontested evidence, that the Respondent repeatedly contravened the National Credit Act and its Regulations by operating as an unregistered credit provider, failing to conduct proper affordability assessments, charging excessive interest, retaining prohibited consumer instruments, and including unlawful provisions in credit agreements. These actions constituted prohibited conduct under the Act. The Tribunal accepted the Applicant's submissions and evidence, noting the Respondent's absence and lack of defence. The seriousness, duration, and extent of the contraventions, the prejudice suffered by consumers, and the need for deterrence justified the imposition of...

Citation
[2023] ZANCT 12
Parties
Applicant: National Credit Regulator; Respondent: Jacobus Adriaan Schalk Engelbrecht t/a Sizabantu Cash Loans
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
1 February 2023
Case Number
NCT/243378/2022/140(1)
Procedural Posture
Administrative Application / Final Judgment After Unopposed Hearing
Outcome
Application granted. The Respondent is found to have repeatedly contravened the National Credit Act and Regulations; prohibited conduct is declared; reckless credit agreements are set aside; administrative fine imposed; further remedial orders granted.
Judges
MC Peenze, S Mbhele, Z Ntuli
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Unlawful Credit Agreement, Administrative Fine, Consumer Protection
Banking and Finance Civil Procedure Commercial and Corporate National Credit Act Reckless Lending Affordability Assessment Unlawful Credit Agreement Administrative Fine +1 more

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Parties

National Credit Regulator

Applicant

Jacobus Adriaan Schalk Engelbrecht t/a Sizabantu Cash Loans

Respondent

Procedural Posture

Administrative Application / Final Judgment After Unopposed Hearing

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act and its Regulations, amounting to prohibited conduct.
  2. 2 Whether the Respondent engaged in reckless lending and failed to conduct proper affordability assessments.
  3. 3 Whether the Tribunal should impose an administrative fine and other remedial orders against the Respondent.

Ratio Decidendi

The Tribunal found, on the uncontested evidence, that the Respondent repeatedly contravened the National Credit Act and its Regulations by operating as an unregistered credit provider, failing to conduct proper affordability assessments, charging excessive interest, retaining prohibited consumer instruments, and including unlawful provisions in credit agreements. These actions constituted prohibited conduct under the Act. The Tribunal accepted the Applicant's submissions and evidence, noting the Respondent's absence and lack of defence. The seriousness, duration, and extent of the contraventions, the prejudice suffered by consumers, and the need for deterrence justified the imposition of...

Court Disposition

Application granted. The Respondent is found to have repeatedly contravened the National Credit Act and Regulations; prohibited conduct is declared; reckless credit agreements are set aside; administrative fine imposed; further remedial orders granted.

Orders

  • The Respondent is declared to have repeatedly contravened the National Credit Act and Regulations, amounting to prohibited conduct.
  • All sampled credit agreements are declared reckless and set aside.