National Credit Regulator v Season Star Trading 333 CC t/a De Noon's Cash Loans (NCT/6977/2012/57(1)(P) NCA) [2013] ZANCT 41 (21 November 2013)

National Credit Regulator v Season Star Trading 333 CC t/a De Noon's Cash Loans (NCT/6977/2012/57(1)(P) NCA) [2013] ZANCT 41 (21 November 2013)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and its regulations by failing to use prescribed forms, not fully disclosing costs in pre-agreement statements, charging interest and fees in excess of statutory limits, splitting loans to charge double initiation fees, granting credit to consumers under debt review, charging unlawful NuPay fees, and collecting credit life insurance premiums without actual policies. The Tribunal held that proof of repeated conduct suffices to establish prohibited conduct and that intention is not required. The evidence from sample consumer files was sufficient to demonstrate systemic contraventions. The Tribunal...

Citation
[2013] ZANCT 41
Parties
Applicant: National Credit Regulator; Respondent: Season Star Trading 333 CC t/a De Noon's Cash Loans
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
21 November 2013
Case Number
NCT/6977/2012/57(1)(P) NCA
Procedural Posture
Cancellation Application / Final Determination
Outcome
Application granted. Respondent's registration as a credit provider cancelled. Administrative fine imposed. Orders for refund and audit issued.
Judges
D Terblanche, N Sephoti, X May
Legal Topics
National Credit Act, Credit Provider Registration, Prohibited Conduct, Administrative Fine, Consumer Protection, Overcharging of Interest
Banking and Finance Civil Procedure National Credit Act Credit Provider Registration Prohibited Conduct Administrative Fine Consumer Protection Overcharging of Interest

Case Brief

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Parties

National Credit Regulator

Applicant

Season Star Trading 333 CC t/a De Noon's Cash Loans

Respondent

Procedural Posture

Cancellation Application / Final Determination

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act and its regulations, justifying cancellation of its registration as a credit provider.
  2. 2 Whether the Respondent failed to use prescribed forms and disclose all costs of credit as required by the Act.
  3. 3 Whether the Respondent charged interest and fees in excess of statutory limits and split loans to circumvent the Act.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and its regulations by failing to use prescribed forms, not fully disclosing costs in pre-agreement statements, charging interest and fees in excess of statutory limits, splitting loans to charge double initiation fees, granting credit to consumers under debt review, charging unlawful NuPay fees, and collecting credit life insurance premiums without actual policies. The Tribunal held that proof of repeated conduct suffices to establish prohibited conduct and that intention is not required. The evidence from sample consumer files was sufficient to demonstrate systemic contraventions. The Tribunal...

Court Disposition

Application granted. Respondent's registration as a credit provider cancelled. Administrative fine imposed. Orders for refund and audit issued.

Orders

  • Respondent's registration as a credit provider is cancelled in terms of section 57(1)(a) and (c) of the Act as of the date of this judgment.
  • Respondent's conduct is declared to be in contravention of its conditions of registration and prohibited under the Act.