National Credit Regulator v Shoprite Investments Ltd (NCT/32946/2015/140(1)) [2017] ZANCT 98 (5 September 2017)

National Credit Regulator v Shoprite Investments Ltd (NCT/32946/2015/140(1)) [2017] ZANCT 98 (5 September 2017)

The Tribunal found that the Applicant validly initiated a complaint against the Respondent, as the Regulator possessed objective information (spreadsheets and sample files) giving rise to a reasonable suspicion of contravention of the Act. The Respondent's credit assessment mechanisms did not result in fair and objective assessments, as they relied on speculative future financial means and disregarded existing obligations, contrary to the requirements of sections 80, 81, and 82 of the National Credit Act. The Respondent repeatedly entered into reckless credit agreements with consumers who had negative disposable incomes, and its adjustments to affordability calculations were unjustified....

Citation
[2017] ZANCT 98
Parties
Applicant: National Credit Regulator; Respondent: Shoprite Investments Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
5 September 2017
Case Number
NCT/32946/2015/140(1)
Procedural Posture
Administrative Application / Final Determination After Hearing
Outcome
The Tribunal found in favour of the Applicant, declaring repeated contraventions of the National Credit Act by the Respondent, imposing an administrative fine, and granting limited relief.
Judges
J Simpson, D Terblanche, P Beck
Legal Topics
Reckless Credit, Affordability Assessment, Administrative Fine, Debt Counselling, Credit Bureau Information
Banking and Finance Civil Procedure Reckless Credit Affordability Assessment Administrative Fine Debt Counselling Credit Bureau Information

Case Brief

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Parties

National Credit Regulator

Applicant

Shoprite Investments Ltd

Respondent

Procedural Posture

Administrative Application / Final Determination After Hearing

Legal Issues

  1. 1 Whether the Applicant validly initiated a complaint against the Respondent under section 136(2) of the National Credit Act.
  2. 2 Whether the Respondent entered into reckless credit agreements with consumers in contravention of sections 80 and 81 of the National Credit Act.
  3. 3 Whether the Respondent's credit assessment mechanisms resulted in fair and objective assessments as required by section 82 of the National Credit Act.

Ratio Decidendi

The Tribunal found that the Applicant validly initiated a complaint against the Respondent, as the Regulator possessed objective information (spreadsheets and sample files) giving rise to a reasonable suspicion of contravention of the Act. The Respondent's credit assessment mechanisms did not result in fair and objective assessments, as they relied on speculative future financial means and disregarded existing obligations, contrary to the requirements of sections 80, 81, and 82 of the National Credit Act. The Respondent repeatedly entered into reckless credit agreements with consumers who had negative disposable incomes, and its adjustments to affordability calculations were unjustified....

Court Disposition

The Tribunal found in favour of the Applicant, declaring repeated contraventions of the National Credit Act by the Respondent, imposing an administrative fine, and granting limited relief.

Orders

  • The Respondent is declared to have repeatedly contravened section 81(3) of the National Credit Act, read with sections 80(1)(b)(ii) and 81(2)(a)(ii) and (iii).
  • The Respondent's repeated contravention constitutes prohibited conduct under the National Credit Act.