National Credit Regulator v Murphy and Sons Cash Loans CC (NCT/82548/2017/57(1)) [2018] ZANCT 14 (23 February 2018)

National Credit Regulator v Murphy and Sons Cash Loans CC (NCT/82548/2017/57(1)) [2018] ZANCT 14 (23 February 2018)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and the conditions of its registration as a credit provider. The Respondent failed to conduct proper affordability assessments, entered into reckless credit agreements, failed to keep proper records, did not provide required pre-agreement statements and quotations, and charged excessive interest and fees. The Respondent did not oppose the application and failed to appear at the hearing, resulting in the Applicant's allegations being deemed admitted. The Tribunal concluded that these contraventions amounted to prohibited conduct under section 150(a) of the NCA. Given the seriousness, duration, and gravity...

Citation
[2018] ZANCT 14
Parties
Applicant: National Credit Regulator; Respondent: Murphy and Sons Cash Loans CC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
23 February 2018
Case Number
NCT/82548/2017/57(1)
Procedural Posture
Review Application / Default Judgment Following Non Appearance and Failure to Oppose
Outcome
Application granted. Respondent found to have repeatedly contravened the National Credit Act and its registration conditions. Registration cancelled. Administrative fine imposed. Refunds to consumers ordered.
Judges
FK Manamela, J Simpson, M Nkomo
Legal Topics
National Credit Act, Reckless Lending, Administrative Fine, Registration Cancellation, Consumer Refund
Banking and Finance Civil Procedure National Credit Act Reckless Lending Administrative Fine Registration Cancellation Consumer Refund

Case Brief

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Parties

National Credit Regulator

Applicant

Murphy and Sons Cash Loans CC

Respondent

Procedural Posture

Review Application / Default Judgment Following Non Appearance and Failure to Oppose

Legal Issues

  1. 1 Whether the registration of the Respondent as a credit provider should be cancelled under section 57(1) of the National Credit Act.
  2. 2 Whether the Respondent contravened sections 81(2)(a), 81(3) read with 80(1)(a), 170 read with Regulation 55(1)(b)(vi), 92(1) read with Regulation 28(1)(b), 100(1)(c) read with Regulation 42, and 101(1)(d) read with 105(1)(a) of the NCA.
  3. 3 Whether the Respondent's conduct amounts to prohibited conduct under section 150(a) of the NCA.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and the conditions of its registration as a credit provider. The Respondent failed to conduct proper affordability assessments, entered into reckless credit agreements, failed to keep proper records, did not provide required pre-agreement statements and quotations, and charged excessive interest and fees. The Respondent did not oppose the application and failed to appear at the hearing, resulting in the Applicant's allegations being deemed admitted. The Tribunal concluded that these contraventions amounted to prohibited conduct under section 150(a) of the NCA. Given the seriousness, duration, and gravity...

Court Disposition

Application granted. Respondent found to have repeatedly contravened the National Credit Act and its registration conditions. Registration cancelled. Administrative fine imposed. Refunds to consumers ordered.

Orders

  • The conduct of the Respondent is declared prohibited under the National Credit Act.
  • The registration of the Respondent as a credit provider is cancelled with immediate effect.