National Credit Regulator v Hand in Hand Financial Services CC trading as Thuso Finance (NCT/158511/2020/140(1)) [2021] ZANCT 30 (31 August 2021)

National Credit Regulator v Hand in Hand Financial Services CC trading as Thuso Finance (NCT/158511/2020/140(1)) [2021] ZANCT 30 (31 August 2021)

The Tribunal found that the Respondent's registration as a credit provider had lapsed, yet it continued to grant credit, contravening section 40(3) of the National Credit Act. The Respondent failed to conduct proper affordability assessments, overcharged interest and service fees, and entered into reckless credit agreements. The Respondent did not file an answering affidavit or condonation application, and the facts alleged by the Applicant were deemed admitted under Rule 13(5). The Tribunal was satisfied that the application documents were adequately served and proceeded to grant the orders sought by the Applicant on a default basis. The Respondent's repeated contraventions were declared...

Citation
[2021] ZANCT 30
Parties
Applicant: National Credit Regulator; Respondent: Hand in Hand Financial Services CC trading as Thuso Finance
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
31 August 2021
Case Number
NCT/158511/2020/140(1)
Procedural Posture
Default Application / Final Determination
Outcome
The application is granted on a default basis. The Respondent is found guilty of repeated contraventions of the National Credit Act and is declared to have engaged in prohibited conduct. An administrative fine of R200,000.00 is imposed, and the Respondent is ordered to refund consumers and appoint an independent...
Judges
A Potwana, T Woker, B Dumisa
Legal Topics
National Credit Act, Reckless Lending, Unregistered Credit Provider, Affordability Assessment, Overcharging Interest, Administrative Fine
Banking and Finance Commercial and Corporate National Credit Act Reckless Lending Unregistered Credit Provider Affordability Assessment Overcharging Interest Administrative Fine

Case Brief

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Parties

National Credit Regulator

Applicant

Hand in Hand Financial Services CC trading as Thuso Finance

Respondent

Procedural Posture

Default Application / Final Determination

Legal Issues

  1. 1 Whether the Respondent contravened multiple provisions of the National Credit Act by granting credit while unregistered and failing to conduct proper affordability assessments.
  2. 2 Whether the Tribunal can grant the orders sought by the Applicant on a default basis.
  3. 3 Whether the Respondent's conduct constitutes prohibited conduct under section 150(a) of the NCA.

Ratio Decidendi

The Tribunal found that the Respondent's registration as a credit provider had lapsed, yet it continued to grant credit, contravening section 40(3) of the National Credit Act. The Respondent failed to conduct proper affordability assessments, overcharged interest and service fees, and entered into reckless credit agreements. The Respondent did not file an answering affidavit or condonation application, and the facts alleged by the Applicant were deemed admitted under Rule 13(5). The Tribunal was satisfied that the application documents were adequately served and proceeded to grant the orders sought by the Applicant on a default basis. The Respondent's repeated contraventions were declared...

Court Disposition

The application is granted on a default basis. The Respondent is found guilty of repeated contraventions of the National Credit Act and is declared to have engaged in prohibited conduct. An administrative fine of R200,000.00 is imposed, and the Respondent is ordered to refund consumers and appoint an independent...

Orders

  • The Respondent is found guilty of contravening sections 40(3), 81(2) read with regulation 23A, 81(2)(a)(ii) read with regulation 23A(12)(b) and 23A(13), 81(2)(a)(iii) read with regulation 23A(3) and regulations 23A(8) and (12)(a) and (c), regulation 23A(9) and (10), section 81(3) read with section 80(1), section...
  • The Respondent's repeated contraventions are declared prohibited conduct in terms of section 150(a) of the NCA.