National Credit Regulator v Ncedumzantsi Business Solutions CC (NCT/223374/2022/57(1)) [2024] ZANCT 34 (10 September 2024)

National Credit Regulator v Ncedumzantsi Business Solutions CC (NCT/223374/2022/57(1)) [2024] ZANCT 34 (10 September 2024)

The Tribunal found that the respondent repeatedly contravened multiple provisions of the National Credit Act and its regulations by failing to conduct proper affordability assessments, engaging in reckless credit granting, charging unlawful and excessive fees, failing to keep proper records, and not submitting statutory reports. The respondent did not contest the allegations, and all facts were deemed admitted. The contraventions were serious and systemic, justifying the declaration of prohibited conduct, setting aside of consumers' obligations under the affected credit agreements, refund of costs to consumers, appointment of an independent auditor to investigate further contraventions,...

Citation
[2024] ZANCT 34
Parties
Applicant: National Credit Regulator; Respondent: Ncedumzantsi Business Solutions CC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
10 September 2024
Case Number
NCT/223374/2022/57(1)
Procedural Posture
Default Application / Judgment After Respondent Failed to File Answering Affidavit; Matter Heard on a Default Basis.
Outcome
Application granted. Respondent's registration as a credit provider cancelled. Credit agreements declared reckless and set aside. Refunds and further investigation ordered. No administrative fine imposed.
Judges
Z Ntuli, MC Peenze, S Mbhele
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Prohibited Conduct, Administrative Fine, Credit Provider Registration
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Prohibited Conduct Administrative Fine Credit Provider Registration

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Parties

National Credit Regulator

Applicant

Ncedumzantsi Business Solutions CC

Respondent

Procedural Posture

Default Application / Judgment After Respondent Failed to File Answering Affidavit; Matter Heard on a Default Basis.

Legal Issues

  1. 1 Whether the respondent repeatedly contravened the National Credit Act and its regulations.
  2. 2 Whether the respondent engaged in reckless credit granting and failed to conduct proper affordability assessments.
  3. 3 Whether the respondent charged unlawful and excessive credit costs.

Ratio Decidendi

The Tribunal found that the respondent repeatedly contravened multiple provisions of the National Credit Act and its regulations by failing to conduct proper affordability assessments, engaging in reckless credit granting, charging unlawful and excessive fees, failing to keep proper records, and not submitting statutory reports. The respondent did not contest the allegations, and all facts were deemed admitted. The contraventions were serious and systemic, justifying the declaration of prohibited conduct, setting aside of consumers' obligations under the affected credit agreements, refund of costs to consumers, appointment of an independent auditor to investigate further contraventions,...

Court Disposition

Application granted. Respondent's registration as a credit provider cancelled. Credit agreements declared reckless and set aside. Refunds and further investigation ordered. No administrative fine imposed.

Orders

  • It is declared that the respondent repeatedly contravened sections 81(2)(a)(ii) and (iii) read with regulation 23A; section 81(3) read with section 80(1)(a); section 170 read with regulation 55(1)(b)(vi) and section 52(5)(e); section 100(1)(a) read with section 101(1); section 100(1)(b) and (c) and section...
  • The above contraventions are declared prohibited conduct in terms of section 150(a).