National Credit Regulator v Midwicket Trading 525 CC t/a Butterfly Cash Loans (NCT/7962/2013/57(1)) [2014] ZANCT 19 (9 June 2014)

National Credit Regulator v Midwicket Trading 525 CC t/a Butterfly Cash Loans (NCT/7962/2013/57(1)) [2014] ZANCT 19 (9 June 2014)

The Tribunal found that the Respondent repeatedly engaged in prohibited conduct under the National Credit Act, including retaining consumer identity documents and bank cards, failing to conduct affordability assessments, charging interest above the statutory maximum, and failing to submit required annual reports. The Respondent did not dispute these allegations, having failed to file any answering affidavit or appear at the hearing. The Tribunal held that the seriousness and repeated nature of the contraventions justified immediate cancellation of the Respondent's registration as a credit provider. However, given the limited number of agreements assessed and the relatively small excess...

Citation
[2014] ZANCT 19
Parties
Applicant: National Credit Regulator; Respondent: Midwicket Trading 525 CC t/a Butterfly Cash Loans
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
9 June 2014
Case Number
NCT/7962/2013/57(1)
Procedural Posture
Review Application / Default Judgment After Respondent Failed to File Answering Affidavit or Appear at Hearing.
Outcome
The Respondent's registration as a credit provider is cancelled with immediate effect. No administrative fine is imposed. No order as to costs.
Judges
T Woker, H Devraj, J Simpson
Legal Topics
National Credit Act, Credit Provider Registration, Prohibited Conduct, Affordability Assessment, Administrative Fine
Banking and Finance Civil Procedure National Credit Act Credit Provider Registration Prohibited Conduct Affordability Assessment 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 4 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

National Credit Regulator

Applicant

Midwicket Trading 525 CC t/a Butterfly Cash Loans

Respondent

Procedural Posture

Review Application / Default Judgment After Respondent Failed to File Answering Affidavit or Appear at Hearing.

Legal Issues

  1. 1 Whether the Respondent repeatedly engaged in prohibited conduct under the National Credit Act.
  2. 2 Whether the Respondent's registration as a credit provider should be cancelled.
  3. 3 Whether an administrative fine should be imposed on the Respondent.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly engaged in prohibited conduct under the National Credit Act, including retaining consumer identity documents and bank cards, failing to conduct affordability assessments, charging interest above the statutory maximum, and failing to submit required annual reports. The Respondent did not dispute these allegations, having failed to file any answering affidavit or appear at the hearing. The Tribunal held that the seriousness and repeated nature of the contraventions justified immediate cancellation of the Respondent's registration as a credit provider. However, given the limited number of agreements assessed and the relatively small excess...

Court Disposition

The Respondent's registration as a credit provider is cancelled with immediate effect. No administrative fine is imposed. No order as to costs.

Orders

  • The Respondent’s registration as a credit provider is cancelled as of the date of this judgment.
  • There is no order as to costs.