National Credit Regulator v King Side Trading CC t/a Easy Cash (NCT/112959/2018/140(1)) [2019] ZANCT 15 (27 February 2019)

National Credit Regulator v King Side Trading CC t/a Easy Cash (NCT/112959/2018/140(1)) [2019] ZANCT 15 (27 February 2019)

The Tribunal found that the Respondent, King Side Trading CC t/a Easy Cash, repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, entering into reckless credit agreements, and charging interest and initiation fees in excess of statutory limits. The Respondent did not oppose the application, and the Tribunal was satisfied that the correct party was before it. The evidence showed that all sampled credit agreements lacked proof of income, monthly expenses, and credit bureau reports, and that consumers were overcharged on interest and fees. The Tribunal concluded that the Respondent's conduct was prohibited under the Act and justified the...

Citation
[2019] ZANCT 15
Parties
Applicant: National Credit Regulator; Respondent: King Side Trading CC t/a Easy Cash
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
27 February 2019
Case Number
NCT/112959/2018/140(1)
Procedural Posture
Administrative Application / Default Judgment After Non Opposition
Outcome
Application granted. Respondent found to have repeatedly contravened the National Credit Act and Regulations. Administrative fine imposed. Interdict granted. Orders for consumer refunds and appointment of auditor issued.
Judges
H Devraj, L Best, F Manamela
Legal Topics
National Credit Act, Reckless Credit, Affordability Assessment, Administrative Fine, Prohibited Charges
Banking and Finance Administrative Law National Credit Act Reckless Credit Affordability Assessment Administrative Fine Prohibited Charges

Case Brief

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Parties

National Credit Regulator

Applicant

King Side Trading CC t/a Easy Cash

Respondent

Procedural Posture

Administrative Application / Default Judgment After Non Opposition

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act and Regulations.
  2. 2 Whether the Respondent should be interdicted from conducting further activities as a credit provider.
  3. 3 Whether consumers' rights and obligations under credit agreements recklessly granted should be set aside.

Ratio Decidendi

The Tribunal found that the Respondent, King Side Trading CC t/a Easy Cash, repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, entering into reckless credit agreements, and charging interest and initiation fees in excess of statutory limits. The Respondent did not oppose the application, and the Tribunal was satisfied that the correct party was before it. The evidence showed that all sampled credit agreements lacked proof of income, monthly expenses, and credit bureau reports, and that consumers were overcharged on interest and fees. The Tribunal concluded that the Respondent's conduct was prohibited under the Act and justified the...

Court Disposition

Application granted. Respondent found to have repeatedly contravened the National Credit Act and Regulations. Administrative fine imposed. Interdict granted. Orders for consumer refunds and appointment of auditor issued.

Orders

  • The Respondent is interdicted from conducting any further activities as a credit provider with immediate effect.
  • The Respondent must pay an administrative fine of R200,000.00 into the National Revenue Fund within 60 days of the judgment.