National Credit Regulator v Pandero Investments 503 CC t/a Iwita Finance (NCT/113131/2018/57(1)) [2019] ZANCT 50 (11 March 2019)

National Credit Regulator v Pandero Investments 503 CC t/a Iwita Finance (NCT/113131/2018/57(1)) [2019] ZANCT 50 (11 March 2019)

The Tribunal found that the investigation and referral by the Applicant were lawful and valid, as the National Credit Act does not require complaints to be evaluated or tested before investigation, nor does it restrict the scope of investigation to the original complaint. The Respondent was found to have engaged in prohibited conduct by entering into reckless credit agreements without proper affordability assessments and by inducing consumers to enter supplementary agreements resulting in service fees exceeding statutory limits. The evidence showed that the Respondent ignored existing debts and granted further loans, trapping consumers in cycles of debt. The NuPay agreements constituted...

Citation
[2019] ZANCT 50
Parties
Applicant: National Credit Regulator; Respondent: Pandero Investments 503 CC t/a Iwita Finance
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
11 March 2019
Case Number
NCT/113131/2018/57(1)
Procedural Posture
Review Application / Final Judgment
Outcome
Application for declaration of prohibited conduct granted; Respondent found to have engaged in prohibited conduct. Administrative fine imposed; Respondent ordered to appoint an independent auditor and reimburse affected consumers.
Judges
T Woker, J Simpson, B Dumisa
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Service Fee Regulation, Supplementary Agreements
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Service Fee Regulation Supplementary Agreements

Case Brief

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Parties

National Credit Regulator

Applicant

Pandero Investments 503 CC t/a Iwita Finance

Respondent

Procedural Posture

Review Application / Final Judgment

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments and maintain supporting documentation.
  2. 2 Whether the Respondent induced consumers to enter into supplementary agreements resulting in excessive service fees.
  3. 3 Whether the investigation and referral by the Applicant was lawful and procedurally valid.

Ratio Decidendi

The Tribunal found that the investigation and referral by the Applicant were lawful and valid, as the National Credit Act does not require complaints to be evaluated or tested before investigation, nor does it restrict the scope of investigation to the original complaint. The Respondent was found to have engaged in prohibited conduct by entering into reckless credit agreements without proper affordability assessments and by inducing consumers to enter supplementary agreements resulting in service fees exceeding statutory limits. The evidence showed that the Respondent ignored existing debts and granted further loans, trapping consumers in cycles of debt. The NuPay agreements constituted...

Court Disposition

Application for declaration of prohibited conduct granted; Respondent found to have engaged in prohibited conduct. Administrative fine imposed; Respondent ordered to appoint an independent auditor and reimburse affected consumers.

Orders

  • The Respondent must appoint an independent auditor at its own cost to audit all credit agreements entered into for three years preceding the judgment, to identify consumers overcharged on service fees.
  • Any consumers found to have been overcharged must be reimbursed; accounts credited or consumers traced and reimbursed.