National Credit Regulator v Sinako Kontant Lenings cc (NCT/8273/2013/57(1)) [2013] ZANCT 58 (11 September 2013)

National Credit Regulator v Sinako Kontant Lenings cc (NCT/8273/2013/57(1)) [2013] ZANCT 58 (11 September 2013)

The Tribunal found that the Respondent had admitted to repeated contraventions of the National Credit Act, its regulations, and its conditions of registration, specifically by requiring consumers to sign unlawful supplementary agreements, charging service fees and interest rates above prescribed limits, and failing to comply with General Condition A1. The Tribunal confirmed the settlement agreement as a consent order under section 138(1) and Rule 20, declared the Respondent's conduct prohibited, and cancelled its registration as a credit provider with immediate effect. The Tribunal held that obligations under existing credit agreements survive cancellation, but any agreements entered into...

Citation
[2013] ZANCT 58
Parties
Applicant: National Credit Regulator; Respondent: Sinako Kontant Lenings CC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
11 September 2013
Case Number
NCT/8273/2013/57(1)
Procedural Posture
Review Application / Application for Cancellation of Registration Under Section 57(1) of the National Credit Act; Confirmation of Settlement as Consent Order
Outcome
The Tribunal confirmed the settlement as a consent order, declared the Respondent's conduct prohibited, cancelled the Respondent's registration as a credit provider, and ordered that affected consumers may apply for certificates under section 164(3)(b) of the Act. No order as to costs.
Judges
F Manamela, L Best, J Maseko
Legal Topics
National Credit Act, Credit Provider Registration, Prohibited Charges, Unlawful Credit Agreements, Consent Orders, Consumer Protection
Banking and Finance Civil Procedure National Credit Act Credit Provider Registration Prohibited Charges Unlawful Credit Agreements Consent Orders Consumer Protection

Case Brief

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Parties

National Credit Regulator

Applicant

Sinako Kontant Lenings CC

Respondent

Procedural Posture

Review Application / Application for Cancellation of Registration Under Section 57(1) of the National Credit Act; Confirmation of Settlement as Consent Order

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act, its regulations, and its conditions of registration.
  2. 2 Whether the Respondent's registration as a credit provider should be cancelled under section 57(1) of the National Credit Act.
  3. 3 Whether the settlement agreement between the parties can be confirmed as a consent order under section 138(1) of the National Credit Act and Rule 20 of the Tribunal Rules.

Ratio Decidendi

The Tribunal found that the Respondent had admitted to repeated contraventions of the National Credit Act, its regulations, and its conditions of registration, specifically by requiring consumers to sign unlawful supplementary agreements, charging service fees and interest rates above prescribed limits, and failing to comply with General Condition A1. The Tribunal confirmed the settlement agreement as a consent order under section 138(1) and Rule 20, declared the Respondent's conduct prohibited, and cancelled its registration as a credit provider with immediate effect. The Tribunal held that obligations under existing credit agreements survive cancellation, but any agreements entered into...

Court Disposition

The Tribunal confirmed the settlement as a consent order, declared the Respondent's conduct prohibited, cancelled the Respondent's registration as a credit provider, and ordered that affected consumers may apply for certificates under section 164(3)(b) of the Act. No order as to costs.

Orders

  • The Deed of Settlement is confirmed as a consent order under section 138 of the National Credit Act and Rule 20 of the Tribunal Rules.
  • The Respondent's conduct is declared prohibited.