National Credit Regulator v Sewatumong Micro Lending CC t/a Sewatumong Cash Loans (NCT/107809/2018/57(1)) [2018] ZANCT 46 (27 August 2018)

National Credit Regulator v Sewatumong Micro Lending CC t/a Sewatumong Cash Loans (NCT/107809/2018/57(1)) [2018] ZANCT 46 (27 August 2018)

The Tribunal found that the Respondent repeatedly contravened multiple provisions of the National Credit Act and associated regulations. The evidence showed that the Respondent failed to provide compliant pre-agreement statements and quotations, did not furnish consumers with copies of credit agreements, neglected to conduct proper affordability assessments, entered into reckless credit agreements, charged excessive interest and fees, and unlawfully retained consumer instruments such as SASSA cards and identity documents. The Respondent's conduct was deemed prohibited and severely prejudicial to consumers. The Tribunal held that the requirements for a default judgment were met, as the...

Citation
[2018] ZANCT 46
Parties
Applicant: National Credit Regulator; Respondent: Sewatumong Micro Lending CC t/a Sewatumong Cash Loans
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
27 August 2018
Case Number
NCT/107809/2018/57(1)
Procedural Posture
Review Application / Default Judgment Following Non Appearance by Respondent
Outcome
Application granted. Respondent found in repeated contravention of the National Credit Act and regulations. Registration cancelled. Administrative fine imposed. Orders for consumer redress granted.
Judges
H Devraj, M Nkomo, K Moodaliyar
Legal Topics
National Credit Act, Reckless Credit, Affordability Assessment, Administrative Fine, Prohibited Conduct, Consumer Protection
Banking and Finance Civil Procedure National Credit Act Reckless Credit Affordability Assessment Administrative Fine Prohibited Conduct Consumer Protection

Case Brief

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Parties

National Credit Regulator

Applicant

Sewatumong Micro Lending CC t/a Sewatumong Cash Loans

Respondent

Procedural Posture

Review Application / Default Judgment Following Non Appearance by Respondent

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act and associated regulations.
  2. 2 Whether the Respondent failed to conduct proper affordability assessments before granting credit.
  3. 3 Whether the Respondent overcharged consumers on interest and fees beyond statutory limits.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened multiple provisions of the National Credit Act and associated regulations. The evidence showed that the Respondent failed to provide compliant pre-agreement statements and quotations, did not furnish consumers with copies of credit agreements, neglected to conduct proper affordability assessments, entered into reckless credit agreements, charged excessive interest and fees, and unlawfully retained consumer instruments such as SASSA cards and identity documents. The Respondent's conduct was deemed prohibited and severely prejudicial to consumers. The Tribunal held that the requirements for a default judgment were met, as the...

Court Disposition

Application granted. Respondent found in repeated contravention of the National Credit Act and regulations. Registration cancelled. Administrative fine imposed. Orders for consumer redress granted.

Orders

  • The Respondent's contraventions of the Act and Regulations are declared prohibited conduct.
  • The Respondent's registration as a credit provider is cancelled with immediate effect.