National Credit Regulator v Khazamola Cash Loan & Holdings (Pty) Ltd (NCT/128377/2019/57(1)) [2019] ZANCT 109 (22 July 2019)

National Credit Regulator v Khazamola Cash Loan & Holdings (Pty) Ltd (NCT/128377/2019/57(1)) [2019] ZANCT 109 (22 July 2019)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, granting credit recklessly, charging interest and fees above the prescribed maximum, and failing to retain required records. The Respondent's conduct was ongoing, affected vulnerable consumers, and demonstrated disregard for statutory obligations. The Tribunal held that these contraventions justified cancellation of the Respondent's registration as a credit provider and the imposition of an administrative fine. The Tribunal also ordered the appointment of an independent auditor to identify overcharged consumers and facilitate refunds.

Citation
[2019] ZANCT 109
Parties
Applicant: National Credit Regulator; Respondent: Khazamola Cash Loan & Holdings (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
22 July 2019
Case Number
NCT/128377/2019/57(1)
Procedural Posture
Default Application / Judgment and Reasons
Outcome
The application is granted. The Respondent's registration as a credit provider is cancelled with immediate effect. An administrative fine of R50,000.00 is imposed. The Respondent is ordered to appoint an independent auditor, refund overcharged consumers, and provide a report to the Applicant.
Judges
MC Peenze, L Best, T Bailey
Legal Topics
Reckless Lending, Affordability Assessment, Excessive Interest, Record Keeping, Administrative Fine
Banking and Finance Civil Procedure Reckless Lending Affordability Assessment Excessive Interest Record Keeping Administrative Fine

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Parties

National Credit Regulator

Applicant

Khazamola Cash Loan & Holdings (Pty) Ltd

Respondent

Procedural Posture

Default Application / Judgment and Reasons

Legal Issues

  1. 1 Whether the Respondent engaged in prohibited conduct by repeatedly contravening the National Credit Act and related regulations.
  2. 2 Whether the Respondent should be deregistered as a credit provider.
  3. 3 Whether an administrative penalty should be imposed on the Respondent.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, granting credit recklessly, charging interest and fees above the prescribed maximum, and failing to retain required records. The Respondent's conduct was ongoing, affected vulnerable consumers, and demonstrated disregard for statutory obligations. The Tribunal held that these contraventions justified cancellation of the Respondent's registration as a credit provider and the imposition of an administrative fine. The Tribunal also ordered the appointment of an independent auditor to identify overcharged consumers and facilitate refunds.

Court Disposition

The application is granted. The Respondent's registration as a credit provider is cancelled with immediate effect. An administrative fine of R50,000.00 is imposed. The Respondent is ordered to appoint an independent auditor, refund overcharged consumers, and provide a report to the Applicant.

Orders

  • The Respondent's registration as a credit provider is cancelled with immediate effect.
  • The Respondent must pay an administrative fine of R50,000.00 into the National Revenue Fund within 30 days of the judgment.