National Credit Regulator v Liang Cash Lons CC (NCT/223350/2022/57(1)) [2022] ZANCT 32 (10 June 2022)

National Credit Regulator v Liang Cash Lons CC (NCT/223350/2022/57(1)) [2022] ZANCT 32 (10 June 2022)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act, Regulations, and conditions of registration by failing to conduct proper affordability assessments, granting credit recklessly, failing to provide pre-agreement statements and credit agreements in the prescribed form, and not submitting required annual financial and statistical returns. The Respondent's conduct placed consumers at risk of over-indebtedness and undermined the regulatory framework. The Tribunal held that proper service of documents had occurred, and the Respondent's failure to oppose the application resulted in all allegations being deemed admitted. The Tribunal concluded that the...

Citation
[2022] ZANCT 32
Parties
Applicant: National Credit Regulator; Respondent: Liang Cash Lons CC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
10 June 2022
Case Number
NCT/223350/2022/57(1)
Procedural Posture
Default Application / Judgment After Default Hearing
Outcome
Application granted. Respondent's registration as a credit provider cancelled. Administrative fine imposed. Appointment of auditor ordered. Credit agreements set aside.
Judges
MC Peenze, T Bailey, T Potwana
Legal Topics
Reckless Credit Granting, Affordability Assessment, Administrative Fine, Credit Provider Registration, Statutory Compliance, Consumer Protection
Banking and Finance Civil Procedure Reckless Credit Granting Affordability Assessment Administrative Fine Credit Provider Registration Statutory Compliance Consumer Protection

Case Brief

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Parties

National Credit Regulator

Applicant

Liang Cash Lons CC

Respondent

Procedural Posture

Default Application / Judgment After Default Hearing

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act, Regulations, and conditions of registration.
  2. 2 Whether the Respondent granted credit recklessly by failing to conduct proper affordability assessments.
  3. 3 Whether the Respondent failed to provide pre-agreement statements and credit agreements in the prescribed form.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act, Regulations, and conditions of registration by failing to conduct proper affordability assessments, granting credit recklessly, failing to provide pre-agreement statements and credit agreements in the prescribed form, and not submitting required annual financial and statistical returns. The Respondent's conduct placed consumers at risk of over-indebtedness and undermined the regulatory framework. The Tribunal held that proper service of documents had occurred, and the Respondent's failure to oppose the application resulted in all allegations being deemed admitted. The Tribunal concluded that the...

Court Disposition

Application granted. Respondent's registration as a credit provider cancelled. Administrative fine imposed. Appointment of auditor ordered. Credit agreements set aside.

Orders

  • The Respondent's registration as a credit provider is cancelled with immediate effect.
  • The Respondent's credit agreements with consumers contained in annexures D1 to D11 of the investigation report are declared reckless and set aside.