National Credit Regulator v Grundling and Another (NCT/123277/2019/137(1)) [2019] ZANCT 154 (23 October 2019)

National Credit Regulator v Grundling and Another (NCT/123277/2019/137(1)) [2019] ZANCT 154 (23 October 2019)

The Tribunal found that both respondents were statutorily obliged to place the debt review application before the magistrate's court. Their failure to do so constituted prohibited conduct under the National Credit Act. The respondents' delays and inaction over nearly seven years were unreasonable and unfair to the consumers, resulting in prejudice and bringing debt counselling into disrepute. The Tribunal held that the respondents contravened section 86(7)(c) read with section 86(10), as well as section 52(5)(c) and General Conditions A1 and A2 of their registration. The Tribunal further found it lacked jurisdiction to order the chairperson to issue a notice under section 164(3)(b), but...

Citation
[2019] ZANCT 154
Parties
Applicant: National Credit Regulator; Respondent: Geraldine Grundling; Respondent: Nadeem Williams
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
23 October 2019
Case Number
NCT/123277/2019/137(1)
Procedural Posture
Prohibited Conduct Application / Merits Hearing After Leave to Refer Granted
Outcome
The Tribunal found that both respondents committed prohibited conduct by failing to place the debt review application before the magistrate's court and contravened their conditions of registration as debt counsellors.
Judges
T Bailey, H Devraj, P Beck
Legal Topics
National Credit Act, Debt Counsellor Registration, Prohibited Conduct, Section 86 Application, Section 52 Conditions
Banking and Finance Civil Procedure National Credit Act Debt Counsellor Registration Prohibited Conduct Section 86 Application Section 52 Conditions

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Parties

National Credit Regulator

Applicant

Geraldine Grundling

Respondent

Nadeem Williams

Respondent

Procedural Posture

Prohibited Conduct Application / Merits Hearing After Leave to Refer Granted

Legal Issues

  1. 1 Whether the respondents committed prohibited conduct by failing to place the debt review application before the magistrate's court.
  2. 2 Whether the respondents' failure contravened their conditions of registration as debt counsellors.

Ratio Decidendi

The Tribunal found that both respondents were statutorily obliged to place the debt review application before the magistrate's court. Their failure to do so constituted prohibited conduct under the National Credit Act. The respondents' delays and inaction over nearly seven years were unreasonable and unfair to the consumers, resulting in prejudice and bringing debt counselling into disrepute. The Tribunal held that the respondents contravened section 86(7)(c) read with section 86(10), as well as section 52(5)(c) and General Conditions A1 and A2 of their registration. The Tribunal further found it lacked jurisdiction to order the chairperson to issue a notice under section 164(3)(b), but...

Court Disposition

The Tribunal found that both respondents committed prohibited conduct by failing to place the debt review application before the magistrate's court and contravened their conditions of registration as debt counsellors.

Orders

  • The first and second respondents committed prohibited conduct by contravening section 86(7)(c) read together with section 86(10) of the Act, and section 52(5)(c) read together with General Conditions A1 and A2 of their conditions of registration as debt counsellors.
  • The Tribunal lacks jurisdiction to order the chairperson of the Tribunal to issue a notice in terms of section 164(3)(b) of the Act to the consumers.