National Credit Regulator v Rustmar CC (NCT/8615/2013/57(1)) [2014] ZANCT 21 (23 May 2014)

National Credit Regulator v Rustmar CC (NCT/8615/2013/57(1)) [2014] ZANCT 21 (23 May 2014)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and the conditions of its registration by requiring consumers to enter into supplementary agreements with Flexifusion, resulting in unlawful and excessive fees. The Respondent also engaged in splitting loans, leading to duplication of fees, in breach of sections 100, 101, and related regulations. As the Respondent failed to file any answering affidavit or appear at the hearing, the Applicant's evidence was accepted as proven on a balance of probabilities. The Tribunal declared the Respondent's conduct to be prohibited, ordered the appointment of an auditor to verify amounts owing to affected consumers,...

Citation
[2014] ZANCT 21
Parties
Applicant: National Credit Regulator; Respondent: Rustmar CC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
23 May 2014
Case Number
NCT/8615/2013/57(1)
Procedural Posture
Default Application / Judgment on Default After Respondent Failed to Appear or File Answering Affidavit
Outcome
Application granted in default. Respondent declared to have engaged in repeated prohibited conduct under the Act. Orders for audit, refund, and interdict granted. No order as to costs.
Judges
B Dumisa, J Simpson, J Maseko
Legal Topics
National Credit Act, Unlawful Fees, Splitting of Loans, Consumer Protection, Default Order
Commercial and Corporate Banking and Finance National Credit Act Unlawful Fees Splitting of Loans Consumer Protection Default Order

Case Brief

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Parties

National Credit Regulator

Applicant

Rustmar CC

Respondent

Procedural Posture

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

Legal Issues

  1. 1 Did the Respondent contravene the National Credit Act and the conditions of its registration as a credit provider?
  2. 2 Is the Respondent liable for unlawful fees and splitting of loans in breach of the Act?
  3. 3 Should the Respondent be ordered to refund affected consumers and appoint an auditor to verify amounts owing?

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and the conditions of its registration by requiring consumers to enter into supplementary agreements with Flexifusion, resulting in unlawful and excessive fees. The Respondent also engaged in splitting loans, leading to duplication of fees, in breach of sections 100, 101, and related regulations. As the Respondent failed to file any answering affidavit or appear at the hearing, the Applicant's evidence was accepted as proven on a balance of probabilities. The Tribunal declared the Respondent's conduct to be prohibited, ordered the appointment of an auditor to verify amounts owing to affected consumers,...

Court Disposition

Application granted in default. Respondent declared to have engaged in repeated prohibited conduct under the Act. Orders for audit, refund, and interdict granted. No order as to costs.

Orders

  • The Respondent is declared to have engaged in repeated prohibited conduct in terms of the Act.
  • The Respondent is ordered to appoint an auditor, at its own costs, to verify and confirm that the Respondent has accurately calculated the amount owing to each of the 200 consumers whose files were found at the Respondent's premises by the investigators.