National Credit Regulator V Handri Financial Services CC t/a Bonus Cash (NCT/183475/2021/57(1)) [2021] ZANCT 48 (13 October 2021)

National Credit Regulator V Handri Financial Services CC t/a Bonus Cash (NCT/183475/2021/57(1)) [2021] ZANCT 48 (13 October 2021)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and its conditions of registration by failing to conduct proper affordability assessments, neglecting to obtain credit bureau reports, misusing bank statements, exaggerating consumers' discretionary income, and failing to retain prescribed records. The Respondent did not contest the allegations, and in terms of Rule 13(5), all facts alleged by the Applicant were deemed admitted. The Tribunal concluded that the Respondent's conduct justified cancellation of its registration as a credit provider, the imposition of an administrative fine, and the appointment of an independent auditor to identify affected...

Citation
[2021] ZANCT 48
Parties
Applicant: National Credit Regulator; Respondent: Handri Financial Services CC t/a Bonus Cash
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
13 October 2021
Case Number
NCT/183475/2021/57(1)
Procedural Posture
Cancellation Application / Default Judgment After Non Appearance by Respondent
Outcome
Application granted. The Respondent's registration as a credit provider is cancelled, an administrative fine is imposed, and further remedial orders are made.
Judges
B Dumisa, D Terblanche, T Bailey
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Administrative Fine, Cancellation of Registration
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Administrative Fine Cancellation of Registration

Case Brief

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Parties

National Credit Regulator

Applicant

Handri Financial Services CC t/a Bonus Cash

Respondent

Procedural Posture

Cancellation Application / Default Judgment After Non Appearance by Respondent

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act and its conditions of registration.
  2. 2 Whether the Respondent failed to conduct proper affordability assessments as required by the Act.
  3. 3 What is the appropriate sanction for the Respondent's conduct.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and its conditions of registration by failing to conduct proper affordability assessments, neglecting to obtain credit bureau reports, misusing bank statements, exaggerating consumers' discretionary income, and failing to retain prescribed records. The Respondent did not contest the allegations, and in terms of Rule 13(5), all facts alleged by the Applicant were deemed admitted. The Tribunal concluded that the Respondent's conduct justified cancellation of its registration as a credit provider, the imposition of an administrative fine, and the appointment of an independent auditor to identify affected...

Court Disposition

Application granted. The Respondent's registration as a credit provider is cancelled, an administrative fine is imposed, and further remedial orders are made.

Orders

  • The Respondent's registration as a credit provider is cancelled with immediate effect.
  • The Respondent must appoint an independent auditor, at its own cost and subject to the Applicant's approval, to identify all consumers affected by reckless lending practices within the past three years.