National Credit Regulator v Modiscore CC trading as Cash Express (NCT/116726/2018/57(1)) [2019] ZANCT 27 (19 March 2019)

National Credit Regulator v Modiscore CC trading as Cash Express (NCT/116726/2018/57(1)) [2019] ZANCT 27 (19 March 2019)

The Tribunal found that the respondent, Modiscore CC trading as Cash Express, engaged in repeated and serious contraventions of the National Credit Act and its conditions of registration. These included reckless lending, failure to conduct proper affordability assessments, charging interest above statutory limits, retention of SASSA and bank cards, failure to disclose charges, and omission of required registration details on credit agreements. The respondent failed to participate meaningfully in the proceedings, and all allegations were deemed admitted. The Tribunal held that deregistration as a credit provider, an interdict against further operations, and an administrative fine of...

Citation
[2019] ZANCT 27
Parties
Applicant: National Credit Regulator; Respondent: Modiscore CC trading as Cash Express
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
19 March 2019
Case Number
NCT/116726/2018/57(1)
Procedural Posture
Review Application / Default Hearing; Application for Deregistration and Administrative Fine
Outcome
Application granted. Respondent deregistered as a credit provider, interdicted from further credit operations, ordered to pay an administrative fine and to appoint an independent auditor for consumer reimbursement.
Judges
J Simpson, L Best, F Manamela
Legal Topics
Credit Provider Deregistration, Reckless Lending, Interest Overcharge, Retention of Sassa Cards, Affordability Assessment, Administrative Fine
Banking and Finance Civil Procedure Credit Provider Deregistration Reckless Lending Interest Overcharge Retention of Sassa Cards Affordability Assessment Administrative Fine

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Parties

National Credit Regulator

Applicant

Modiscore CC trading as Cash Express

Respondent

Procedural Posture

Review Application / Default Hearing; Application for Deregistration and Administrative Fine

Legal Issues

  1. 1 Whether the respondent contravened the National Credit Act and its conditions of registration.
  2. 2 Whether the respondent engaged in reckless lending and prohibited conduct under the NCA.
  3. 3 Whether the respondent should be deregistered as a credit provider and subjected to an administrative fine.

Ratio Decidendi

The Tribunal found that the respondent, Modiscore CC trading as Cash Express, engaged in repeated and serious contraventions of the National Credit Act and its conditions of registration. These included reckless lending, failure to conduct proper affordability assessments, charging interest above statutory limits, retention of SASSA and bank cards, failure to disclose charges, and omission of required registration details on credit agreements. The respondent failed to participate meaningfully in the proceedings, and all allegations were deemed admitted. The Tribunal held that deregistration as a credit provider, an interdict against further operations, and an administrative fine of...

Court Disposition

Application granted. Respondent deregistered as a credit provider, interdicted from further credit operations, ordered to pay an administrative fine and to appoint an independent auditor for consumer reimbursement.

Orders

  • The respondent's registration as a credit provider is cancelled as of the date of judgment.
  • The respondent is interdicted from entering into any further credit transactions or operating as a credit provider.