National Credit Regulator v Lehaiwas Chashers Pty Ltd (NCT/223356/2022/57(1)) [2022] ZANCT 28 (2 June 2022)

National Credit Regulator v Lehaiwas Chashers Pty Ltd (NCT/223356/2022/57(1)) [2022] ZANCT 28 (2 June 2022)

The Tribunal found that Lehaiwas Chashers Pty Ltd engaged in repeated prohibited conduct by failing to comply with multiple provisions of the National Credit Act. The respondent did not provide pre-agreement statements or quotations, did not issue credit agreements in the prescribed form, failed to conduct affordability assessments, charged interest rates far in excess of the statutory maximum, retained consumer instruments unlawfully, and failed to submit required statutory reports. The respondent did not oppose the application, and all allegations were deemed admitted. The Tribunal declared the sampled credit agreements reckless, set aside the consumers' obligations under those...

Citation
[2022] ZANCT 28
Parties
Applicant: National Credit Regulator; Respondent: Lehaiwas Chashers Pty Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
2 June 2022
Case Number
NCT/223356/2022/57(1)
Procedural Posture
Prohibited Conduct Application / Default Judgment After Respondent Failed to File Answering Affidavit or Appear.
Outcome
Application granted. Respondent found to have engaged in repeated prohibited conduct. Registration cancelled. Administrative fine imposed. Independent audit ordered. Interdict granted.
Judges
J Simpson, T Bailey, N Sephoti
Legal Topics
National Credit Act, Reckless Lending, Interest Rate Regulation, Affordability Assessment, Prohibited Conduct, Administrative Fine
Banking and Finance Civil Procedure National Credit Act Reckless Lending Interest Rate Regulation Affordability Assessment Prohibited Conduct Administrative Fine

Case Brief

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Parties

National Credit Regulator

Applicant

Lehaiwas Chashers Pty Ltd

Respondent

Procedural Posture

Prohibited Conduct Application / Default Judgment After Respondent Failed to File Answering Affidavit or Appear.

Legal Issues

  1. 1 Did the respondent contravene multiple provisions of the National Credit Act by failing to provide prescribed documentation, conduct affordability assessments, and charging excessive interest rates?
  2. 2 Is the respondent guilty of prohibited conduct warranting deregistration and administrative sanctions?
  3. 3 Should the respondent be ordered to appoint an independent auditor and reimburse overcharged consumers?

Ratio Decidendi

The Tribunal found that Lehaiwas Chashers Pty Ltd engaged in repeated prohibited conduct by failing to comply with multiple provisions of the National Credit Act. The respondent did not provide pre-agreement statements or quotations, did not issue credit agreements in the prescribed form, failed to conduct affordability assessments, charged interest rates far in excess of the statutory maximum, retained consumer instruments unlawfully, and failed to submit required statutory reports. The respondent did not oppose the application, and all allegations were deemed admitted. The Tribunal declared the sampled credit agreements reckless, set aside the consumers' obligations under those...

Court Disposition

Application granted. Respondent found to have engaged in repeated prohibited conduct. Registration cancelled. Administrative fine imposed. Independent audit ordered. Interdict granted.

Orders

  • The respondent is found to have engaged in repeated prohibited conduct.
  • The respondent's registration as a credit provider is cancelled with immediate effect.