National Credit Regulator v Khululeka Cash Loans CC (NCT/98951/2018/140(1)) [2018] ZANCT 173 (28 June 2018)

National Credit Regulator v Khululeka Cash Loans CC (NCT/98951/2018/140(1)) [2018] ZANCT 173 (28 June 2018)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and its Regulations by entering into credit agreements without conducting proper affordability assessments, granting reckless credit, operating as an unregistered credit provider, and failing to submit annual financial and operational returns. The evidence presented by the Applicant was uncontested, and the Respondent's absence and failure to respond resulted in the allegations being deemed admitted. The Tribunal considered the nature, duration, and gravity of the contraventions, the prejudice to consumers, and the Respondent's disregard for compliance notices. The Tribunal held that these factors...

Citation
[2018] ZANCT 173
Parties
Applicant: National Credit Regulator; Respondent: Khululeka Cash Loans CC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
28 June 2018
Case Number
NCT/98951/2018/140(1)
Procedural Posture
Administrative Application / Default Judgment
Outcome
The application is granted. The Respondent is declared to have engaged in prohibited conduct, interdicted from future breaches, and ordered to pay an administrative fine of R100,000.00 by 31 December 2018. No order as to costs.
Judges
H Devraj, B Dumisa, K Moodaliyar
Legal Topics
National Credit Act, Reckless Credit, Affordability Assessment, Credit Provider Registration, Administrative Fine
Banking and Finance Civil Procedure National Credit Act Reckless Credit Affordability Assessment Credit Provider Registration Administrative Fine

Case Brief

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Parties

National Credit Regulator

Applicant

Khululeka Cash Loans CC

Respondent

Procedural Posture

Administrative Application / Default Judgment

Legal Issues

  1. 1 Whether the Respondent entered into credit agreements without conducting proper affordability assessments.
  2. 2 Whether the Respondent granted reckless credit in contravention of the National Credit Act.
  3. 3 Whether the Respondent operated as a credit provider while unregistered.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and its Regulations by entering into credit agreements without conducting proper affordability assessments, granting reckless credit, operating as an unregistered credit provider, and failing to submit annual financial and operational returns. The evidence presented by the Applicant was uncontested, and the Respondent's absence and failure to respond resulted in the allegations being deemed admitted. The Tribunal considered the nature, duration, and gravity of the contraventions, the prejudice to consumers, and the Respondent's disregard for compliance notices. The Tribunal held that these factors...

Court Disposition

The application is granted. The Respondent is declared to have engaged in prohibited conduct, interdicted from future breaches, and ordered to pay an administrative fine of R100,000.00 by 31 December 2018. No order as to costs.

Orders

  • The Respondent's contravention of the provisions of the Act and Regulations is declared prohibited conduct.
  • The Respondent is interdicted with immediate effect from future breaches of the Act and Regulations.