National Credit Regulator v Self Discovery Cash and Marketing CC (NCT/71714/2016/140(1)) [2018] ZANCT 28 (9 January 2018)

National Credit Regulator v Self Discovery Cash and Marketing CC (NCT/71714/2016/140(1)) [2018] ZANCT 28 (9 January 2018)

The Tribunal found that the complaint against the Respondent was properly initiated by a telephonic complaint from the consumer, as permitted by Regulation 50(1)(b), and supported by a confirmatory affidavit. The inspector's investigation was lawfully conducted under section 50(2)(a) and section 25 of the National Credit Act, as no documents were seized but only copied with the Respondent's cooperation; thus, no search and seizure warrant was required. The Tribunal accepted the evidence that the Respondent failed to conduct proper affordability assessments, did not provide pre-agreement statements and quotations in the prescribed form, failed to provide credit agreements in the prescribed...

Citation
[2018] ZANCT 28
Parties
Applicant: National Credit Regulator; Respondent: Self Discovery Cash and Marketing CC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
9 January 2018
Case Number
NCT/71714/2016/140(1)
Procedural Posture
Administrative Application / Final Judgment After Oral Hearing and Consideration of Points in Limine
Outcome
The application is granted. The Respondent is found to have repeatedly contravened the National Credit Act and engaged in prohibited conduct. The Respondent's registration as a credit provider is cancelled, and an administrative fine is imposed.
Judges
T Woker, A Potwana, X May
Legal Topics
National Credit Act, Affordability Assessment, Unlawful Contractual Terms, Interest Rate Regulation, Emoluments Attachment Orders, Administrative Penalty
Banking and Finance Civil Procedure National Credit Act Affordability Assessment Unlawful Contractual Terms Interest Rate Regulation Emoluments Attachment Orders Administrative Penalty

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Parties

National Credit Regulator

Applicant

Self Discovery Cash and Marketing CC

Respondent

Procedural Posture

Administrative Application / Final Judgment After Oral Hearing and Consideration of Points in Limine

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments before granting loans.
  2. 2 Whether the Respondent failed to provide pre-agreement statements and quotations in the prescribed form to consumers.
  3. 3 Whether the Respondent failed to provide credit agreements to consumers in the prescribed forms.

Ratio Decidendi

The Tribunal found that the complaint against the Respondent was properly initiated by a telephonic complaint from the consumer, as permitted by Regulation 50(1)(b), and supported by a confirmatory affidavit. The inspector's investigation was lawfully conducted under section 50(2)(a) and section 25 of the National Credit Act, as no documents were seized but only copied with the Respondent's cooperation; thus, no search and seizure warrant was required. The Tribunal accepted the evidence that the Respondent failed to conduct proper affordability assessments, did not provide pre-agreement statements and quotations in the prescribed form, failed to provide credit agreements in the prescribed...

Court Disposition

The application is granted. The Respondent is found to have repeatedly contravened the National Credit Act and engaged in prohibited conduct. The Respondent's registration as a credit provider is cancelled, and an administrative fine is imposed.

Orders

  • The Respondent's registration as a credit provider is cancelled with immediate effect.
  • The Respondent is to pay an administrative fine of R100,000.00 into the National Revenue Fund within 30 business days of the judgment.