National Credit Regulator v RCL Micro Finance (Pty) Ltd (NCT/132260/2019/57(1)) [2020] ZANCT 6 (3 April 2020)

National Credit Regulator v RCL Micro Finance (Pty) Ltd (NCT/132260/2019/57(1)) [2020] ZANCT 6 (3 April 2020)

The Tribunal found that the respondent repeatedly contravened the National Credit Act and associated regulations by retaining and using SASSA cards to enforce credit agreements, failing to conduct proper affordability assessments, entering into reckless credit agreements, overcharging service fees, and requiring consumers to sign unlawful supplementary agreements. The respondent's explanations, including attributing failures to a single employee, did not absolve it of responsibility. The Tribunal refused to cancel the respondent's registration as a credit provider, considering the contraventions were limited to one branch and corrective measures were taken. However, the Tribunal imposed...

Citation
[2020] ZANCT 6
Parties
Applicant: National Credit Regulator; Respondent: RCL Micro Finance (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
3 April 2020
Case Number
NCT/132260/2019/57(1)
Procedural Posture
Review Application / Judgment and Reasons
Outcome
The Tribunal found repeated contraventions of the National Credit Act and regulations by the respondent, refused cancellation of registration, imposed an administrative fine, ordered appointment of an auditor, set aside obligations under reckless agreements, and made further orders as detailed.
Judges
T Bailey, M Peenze, J Simpson
Legal Topics
National Credit Act, Reckless Lending, Prohibited Conduct, Affordability Assessment, Service Fee Overcharge, Credit Provider Registration
Banking and Finance Civil Procedure National Credit Act Reckless Lending Prohibited Conduct Affordability Assessment Service Fee Overcharge Credit Provider Registration

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Parties

National Credit Regulator

Applicant

RCL Micro Finance (Pty) Ltd

Respondent

Procedural Posture

Review Application / Judgment and Reasons

Legal Issues

  1. 1 Did the respondent contravene the National Credit Act and associated regulations in its credit provision practices?
  2. 2 Did the respondent engage in prohibited conduct by retaining SASSA cards and failing to conduct proper affordability assessments?
  3. 3 Were the respondent's credit agreements with consumers reckless under section 80(1)(a) of the Act?

Ratio Decidendi

The Tribunal found that the respondent repeatedly contravened the National Credit Act and associated regulations by retaining and using SASSA cards to enforce credit agreements, failing to conduct proper affordability assessments, entering into reckless credit agreements, overcharging service fees, and requiring consumers to sign unlawful supplementary agreements. The respondent's explanations, including attributing failures to a single employee, did not absolve it of responsibility. The Tribunal refused to cancel the respondent's registration as a credit provider, considering the contraventions were limited to one branch and corrective measures were taken. However, the Tribunal imposed...

Court Disposition

The Tribunal found repeated contraventions of the National Credit Act and regulations by the respondent, refused cancellation of registration, imposed an administrative fine, ordered appointment of an auditor, set aside obligations under reckless agreements, and made further orders as detailed.

Orders

  • The respondent has repeatedly contravened specified sections of the Act, regulations, and conditions.
  • The repeated contraventions constitute prohibited conduct under section 150(a) of the Act.