National Credit Regulator v Mosadi 19 Trading Enterprise (Pty) Ltd (NCT/223369/2022/57(1)) [2022] ZANCT 29 (17 June 2022)

National Credit Regulator v Mosadi 19 Trading Enterprise (Pty) Ltd (NCT/223369/2022/57(1)) [2022] ZANCT 29 (17 June 2022)

The Tribunal found that the respondent repeatedly contravened the National Credit Act and associated regulations by failing to conduct proper affordability assessments, granting reckless credit, charging excessive interest and costs, including unlawful provisions in credit agreements, failing to provide pre-agreement statements and quotations, and not submitting required financial and operational returns. The respondent's conduct constituted prohibited conduct under section 150(a) of the Act. The Tribunal held that these egregious contraventions justified the cancellation of the respondent's registration as a credit provider, the setting aside of the affected credit agreements as...

Citation
[2022] ZANCT 29
Parties
Applicant: National Credit Regulator; Respondent: Mosadi 19 Trading Enterprise (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
17 June 2022
Case Number
NCT/223369/2022/57(1)
Procedural Posture
Review Application / Default Judgment Following Non Opposition; Hearing Held on 1 June 2022
Outcome
Application granted. Respondent's registration as a credit provider cancelled. Credit agreements set aside as reckless. Administrative fine imposed. Auditor to be appointed. Refunds to affected consumers ordered.
Judges
T Bailey, J Simpson, N Sephoti
Legal Topics
Reckless Credit, Affordability Assessment, Excessive Interest, Unlawful Contract Terms, Registration Cancellation, Administrative Fine
Banking and Finance Civil Procedure Reckless Credit Affordability Assessment Excessive Interest Unlawful Contract Terms Registration Cancellation Administrative Fine

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Parties

National Credit Regulator

Applicant

Mosadi 19 Trading Enterprise (Pty) Ltd

Respondent

Procedural Posture

Review Application / Default Judgment Following Non Opposition; Hearing Held on 1 June 2022

Legal Issues

  1. 1 Did the respondent contravene the National Credit Act and associated regulations in its credit granting practices?
  2. 2 Was the respondent's conduct prohibited under section 150(a) of the Act?
  3. 3 Should the respondent's registration as a credit provider be cancelled?

Ratio Decidendi

The Tribunal found that the respondent repeatedly contravened the National Credit Act and associated regulations by failing to conduct proper affordability assessments, granting reckless credit, charging excessive interest and costs, including unlawful provisions in credit agreements, failing to provide pre-agreement statements and quotations, and not submitting required financial and operational returns. The respondent's conduct constituted prohibited conduct under section 150(a) of the Act. The Tribunal held that these egregious contraventions justified the cancellation of the respondent's registration as a credit provider, the setting aside of the affected credit agreements as...

Court Disposition

Application granted. Respondent's registration as a credit provider cancelled. Credit agreements set aside as reckless. Administrative fine imposed. Auditor to be appointed. Refunds to affected consumers ordered.

Orders

  • The respondent has repeatedly contravened sections 81(2)(a)(ii)-(iii), 81(3) read with 80(1)(a), 100(1)(c), 101(1)(d)(ii), 100(1)(b)-(c), 101(1)(b)(i), (c)(iii), (d)(ii), 90(1)-(2), 92(1), 93(1)-(2), and 52(5)(c) read with General Condition 3 and Regulation 66 of the National Credit Act and regulations.
  • The respondent's repeated contraventions constitute prohibited conduct under section 150(a) of the Act.