National Credit Regulator v Fick NO and Another (NCT/99222/2018/140(1)) [2020] ZANCT 17 (28 October 2020)

National Credit Regulator v Fick NO and Another (NCT/99222/2018/140(1)) [2020] ZANCT 17 (28 October 2020)

The Tribunal found that the Respondents, as trustees of the Helmo Trust trading as Intra Finance Cash Loans, repeatedly contravened the National Credit Act and its regulations by failing to conduct proper affordability assessments, failing to keep records of such assessments, and inducing consumers to sign...

Source-derived case information.

Citation
[2020] ZANCT 17
Parties
Applicant: National Credit Regulator; Respondent: Helena Johanna Maria Fick N.O.; Respondent: Johannes Hendrik Fick N.O.
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
28 October 2020
Case Number
NCT/99222/2018/140(1)
Procedural Posture
Civil Application / Final Judgment
Outcome
Application granted in part; Respondents found to have engaged in prohibited conduct and ordered to pay an administrative fine and refund affected consumers.
Judges
F Manamela, J Simpson, A Potwana
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Administrative Fine, Prohibited Conduct
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Administrative Fine Prohibited Conduct

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Parties

National Credit Regulator

Applicant

Helena Johanna Maria Fick N.O.

Respondent

Johannes Hendrik Fick N.O.

Respondent

Procedural Posture

Civil Application / Final Judgment

Legal Issues

  1. 1 Whether the Respondents repeatedly contravened the National Credit Act and its regulations.
  2. 2 Whether the Respondents failed to conduct proper affordability assessments before granting credit.
  3. 3 Whether the Respondents induced consumers to sign supplementary agreements resulting in unlawful charges.

Ratio Decidendi

The Tribunal found that the Respondents, as trustees of the Helmo Trust trading as Intra Finance Cash Loans, repeatedly contravened the National Credit Act and its regulations by failing to conduct proper affordability assessments, failing to keep records of such assessments, and inducing consumers to sign supplementary agreements resulting in unlawful charges exceeding the prescribed maximums. The Tribunal dismissed the Respondents' points in limine regarding non-joinder, due administrative process, and jurisdiction, finding that the Applicant had followed proper procedure and that the Tribunal was competent to adjudicate the matter. The Tribunal also rejected the argument that the...

Court Disposition

Application granted in part; Respondents found to have engaged in prohibited conduct and ordered to pay an administrative fine and refund affected consumers.

Orders

  • The Respondents' repeated contraventions of the National Credit Act and regulations are declared prohibited conduct.
  • The Respondents are to pay an administrative fine of R150,000 into the National Revenue Fund within 60 days of the judgment.