National Credit Regulator v Orange Cash Loans (Pty) Ltd (NCT/134241/2019/57(1)) [2019] ZANCT 166 (7 November 2019)

National Credit Regulator v Orange Cash Loans (Pty) Ltd (NCT/134241/2019/57(1)) [2019] ZANCT 166 (7 November 2019)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and its registration conditions by failing to conduct proper affordability assessments, extending reckless credit, charging unlawful and excessive fees, and failing to keep proper records. The Respondent did not contest the allegations, and in terms of Rule 13(5), the facts were deemed admitted. The Tribunal held that cancellation of the Respondent's registration was justified, that an independent auditor should be appointed to identify and facilitate refunds to affected consumers, and that an administrative fine was warranted due to the Respondent's significant benefit from its unlawful conduct.

Citation
[2019] ZANCT 166
Parties
Applicant: National Credit Regulator; Respondent: Orange Cash Loans (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
7 November 2019
Case Number
NCT/134241/2019/57(1)
Procedural Posture
Review Application / Default Judgment After Respondent Failed to File Answering Affidavit or Appear at Hearing
Outcome
Application granted. Respondent's registration as a credit provider cancelled. Auditor to be appointed to identify and facilitate refunds to affected consumers. Administrative fine imposed.
Judges
B Dumisa, T Woker, L Best
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Administrative Fine, Registration Cancellation
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Administrative Fine Registration Cancellation

Case Brief

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Parties

National Credit Regulator

Applicant

Orange Cash Loans (Pty) Ltd

Respondent

Procedural Posture

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

Legal Issues

  1. 1 Did the Respondent breach the provisions of the National Credit Act and its registration conditions as alleged.
  2. 2 What is the appropriate sanction for the Respondent's repeated contraventions.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and its registration conditions by failing to conduct proper affordability assessments, extending reckless credit, charging unlawful and excessive fees, and failing to keep proper records. The Respondent did not contest the allegations, and in terms of Rule 13(5), the facts were deemed admitted. The Tribunal held that cancellation of the Respondent's registration was justified, that an independent auditor should be appointed to identify and facilitate refunds to affected consumers, and that an administrative fine was warranted due to the Respondent's significant benefit from its unlawful conduct.

Court Disposition

Application granted. Respondent's registration as a credit provider cancelled. Auditor to be appointed to identify and facilitate refunds to affected consumers. Administrative fine imposed.

Orders

  • The Respondent's registration as a credit provider is cancelled with immediate effect.
  • The Respondent is ordered to appoint an independent auditor, at its own cost, to identify and facilitate refunds to consumers who were overcharged.