National Credit Regulator v Pham Pham Money Lenders (Pty) Ltd Registration Number 2017/068656/07 (NCT/183525/2021/57(1)) [2021] ZANCT 28 (22 September 2021)

National Credit Regulator v Pham Pham Money Lenders (Pty) Ltd Registration Number 2017/068656/07 (NCT/183525/2021/57(1)) [2021] ZANCT 28 (22 September 2021)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, granting reckless credit, charging excessive interest and unlawful fees, and failing to provide pre-agreement statements and quotations. The evidence from the investigation report and sampled consumer files demonstrated ongoing and serious breaches. The Respondent's conduct exploited consumers, caused financial harm, and disregarded statutory obligations. The Tribunal held that cancellation of the Respondent's registration and the imposition of an administrative fine were appropriate remedies to protect consumers and deter similar conduct in the...

Citation
[2021] ZANCT 28
Parties
Applicant: National Credit Regulator; Respondent: Pham Pham Money Lenders (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
22 September 2021
Case Number
NCT/183525/2021/57(1)
Procedural Posture
Cancellation Application / Default Judgment After Respondent Failed to Appear or File Answering Affidavit.
Outcome
Application granted. Respondent's registration as a credit provider cancelled. Administrative fine imposed. Consumer redress ordered.
Judges
MC Peenze, T Woker, K Moodaliyar
Legal Topics
National Credit Act, Reckless Credit Granting, Affordability Assessment, Excessive Interest, Administrative Fine, Consumer Protection
Banking and Finance Civil Procedure National Credit Act Reckless Credit Granting Affordability Assessment Excessive Interest Administrative Fine Consumer Protection

Case Brief

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Parties

National Credit Regulator

Applicant

Pham Pham Money Lenders (Pty) Ltd

Respondent

Procedural Posture

Cancellation Application / Default Judgment After Respondent Failed to Appear or File Answering Affidavit.

Legal Issues

  1. 1 Did the Respondent repeatedly contravene the National Credit Act and its Regulations?
  2. 2 Should the Respondent's registration as a credit provider be cancelled?
  3. 3 Is the imposition of an administrative fine justified?

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, granting reckless credit, charging excessive interest and unlawful fees, and failing to provide pre-agreement statements and quotations. The evidence from the investigation report and sampled consumer files demonstrated ongoing and serious breaches. The Respondent's conduct exploited consumers, caused financial harm, and disregarded statutory obligations. The Tribunal held that cancellation of the Respondent's registration and the imposition of an administrative fine were appropriate remedies to protect consumers and deter similar conduct in the...

Court Disposition

Application granted. Respondent's registration as a credit provider cancelled. Administrative fine imposed. Consumer redress ordered.

Orders

  • The Respondent has repeatedly contravened specified provisions of the National Credit Act and Regulations.
  • The Respondent's conduct is declared prohibited in terms of Section 150(a) of the Act.