National Credit Regulator v Masasa Financial Services and Property Development t/a Masasa Cash Loans (NCT/214109/2021/57(1)) [2022] ZANCT 11 (11 March 2022)

National Credit Regulator v Masasa Financial Services and Property Development t/a Masasa Cash Loans (NCT/214109/2021/57(1)) [2022] ZANCT 11 (11 March 2022)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act, its Regulations, and its Conditions of Registration by failing to conduct proper affordability assessments, overcharging interest, failing to provide prescribed documentation, including unlawful provisions in credit agreements, and failing to update records and submit required returns. The Respondent did not oppose the application or attend the hearing, and the Applicant's evidence was uncontested. The Tribunal held that these contraventions amounted to prohibited conduct and reckless lending, justifying cancellation of the Respondent's registration and the imposition of an administrative fine of...

Citation
[2022] ZANCT 11
Parties
Applicant: National Credit Regulator; Respondent: Masasa Financial Services and Property Development t/a Masasa Cash Loans
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
11 March 2022
Case Number
NCT/214109/2021/57(1)
Procedural Posture
Administrative Application / Default Judgment After Unopposed Application
Outcome
Application granted. Respondent's registration as a credit provider cancelled. Administrative fine of R1,000,000 imposed. Credit agreements declared reckless and consumers' obligations set aside. Refunds and corrective actions ordered. Appointment of independent auditor ordered. No order as to costs.
Judges
T Woker, K Moodaliyar, T Bailey
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Administrative Penalty, Credit Provider Registration, Consumer Protection
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Administrative Penalty Credit Provider Registration Consumer Protection

Case Brief

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Parties

National Credit Regulator

Applicant

Masasa Financial Services and Property Development t/a Masasa Cash Loans

Respondent

Procedural Posture

Administrative Application / Default Judgment After Unopposed Application

Legal Issues

  1. 1 Did the Respondent repeatedly contravene the National Credit Act, its Regulations, and its Conditions of Registration as a credit provider?
  2. 2 Is the Respondent guilty of prohibited conduct, including reckless lending and overcharging interest?
  3. 3 Should the Respondent's registration as a credit provider be cancelled and an administrative penalty imposed?

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act, its Regulations, and its Conditions of Registration by failing to conduct proper affordability assessments, overcharging interest, failing to provide prescribed documentation, including unlawful provisions in credit agreements, and failing to update records and submit required returns. The Respondent did not oppose the application or attend the hearing, and the Applicant's evidence was uncontested. The Tribunal held that these contraventions amounted to prohibited conduct and reckless lending, justifying cancellation of the Respondent's registration and the imposition of an administrative fine of...

Court Disposition

Application granted. Respondent's registration as a credit provider cancelled. Administrative fine of R1,000,000 imposed. Credit agreements declared reckless and consumers' obligations set aside. Refunds and corrective actions ordered. Appointment of independent auditor ordered. No order as to costs.

Orders

  • The Respondent's registration as a credit provider is cancelled with immediate effect.
  • The Respondent must pay an administrative fine of R1,000,000 into the National Revenue Fund within 30 days of the judgment.