National Credit Regulator v Microloans Two Go (Pty) t/a Microloans 2 Go (NCT/158471/2020/57(1)) [2021] ZANCT 4 (15 April 2021)

National Credit Regulator v Microloans Two Go (Pty) t/a Microloans 2 Go (NCT/158471/2020/57(1)) [2021] ZANCT 4 (15 April 2021)

The Tribunal found, on a balance of probabilities, that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, charging interest in excess of prescribed limits, and failing to use the prescribed forms for small credit agreements. The evidence showed that credit bureau reports were accessed after loans were granted and that interest was calculated incorrectly, resulting in consumer overcharges. The Respondent's conduct constituted prohibited conduct under the NCA. Despite voluntary deregistration, the Tribunal held that remedial orders and an administrative fine were appropriate to deter similar conduct and protect consumer...

Citation
[2021] ZANCT 4
Parties
Applicant: National Credit Regulator; Respondent: Microloans Two Go (Pty) Ltd t/a Microloans 2 Go
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
15 April 2021
Case Number
NCT/158471/2020/57(1)
Procedural Posture
Administrative Application / Final Judgment
Outcome
The Tribunal found the Respondent guilty of repeated contraventions of the National Credit Act and imposed remedial orders and an administrative fine.
Judges
T Woker, B Dumisa, M Peenze
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Excessive Interest, Prescribed Forms, Administrative Fine
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Excessive Interest Prescribed Forms Administrative Fine

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 6 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

National Credit Regulator

Applicant

Microloans Two Go (Pty) Ltd t/a Microloans 2 Go

Respondent

Procedural Posture

Administrative Application / Final Judgment

Legal Issues

  1. 1 Did the Respondent repeatedly contravene the National Credit Act and associated regulations by engaging in reckless credit lending, charging excessive interest, and failing to use prescribed forms for small credit agreements?
  2. 2 Is the Respondent liable for administrative penalties and consumer refunds under the NCA despite voluntary deregistration?
  3. 3 Should the Tribunal set aside consumer obligations under the impugned credit agreements and order further remedial measures?

Ratio Decidendi

The Tribunal found, on a balance of probabilities, that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, charging interest in excess of prescribed limits, and failing to use the prescribed forms for small credit agreements. The evidence showed that credit bureau reports were accessed after loans were granted and that interest was calculated incorrectly, resulting in consumer overcharges. The Respondent's conduct constituted prohibited conduct under the NCA. Despite voluntary deregistration, the Tribunal held that remedial orders and an administrative fine were appropriate to deter similar conduct and protect consumer...

Court Disposition

The Tribunal found the Respondent guilty of repeated contraventions of the National Credit Act and imposed remedial orders and an administrative fine.

Orders

  • The Respondent is found guilty of repeatedly contravening specified provisions of the National Credit Act.
  • The credit agreements entered into between the Respondent and the listed consumers are declared reckless.