National Credit Regulator v Sliksam Cash Loans (Pty) Ltd (NCT/127512/2019/140(1)) [2021] ZANCT 43 (5 October 2021)

National Credit Regulator v Sliksam Cash Loans (Pty) Ltd (NCT/127512/2019/140(1)) [2021] ZANCT 43 (5 October 2021)

The Tribunal found that the Respondent, through its Mooi River office, repeatedly contravened multiple provisions of the National Credit Act and associated regulations. The evidence established that the Respondent granted credit without conducting affordability assessments, failed to provide required pre-agreement statements and quotations, charged excessive interest rates, retained prohibited instruments for debt collection, and failed to keep proper records. The Tribunal rejected the Respondent's defence that the Mooi River office operated independently, holding that the Respondent, as the registered credit provider, was responsible for the conduct of all its branches. The seriousness...

Citation
[2021] ZANCT 43
Parties
Applicant: National Credit Regulator; Respondent: Sliksam Cash Loans (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
5 October 2021
Case Number
NCT/127512/2019/140(1)
Procedural Posture
Referral Application / Final Judgment
Outcome
The application is granted. The Respondent is declared to have repeatedly contravened the National Credit Act and associated regulations. An administrative fine of R50,000 is imposed. No order is made regarding the appointment of an auditor or costs.
Judges
T Woker, D Terblanche, T Bailey
Legal Topics
National Credit Act, Reckless Credit Lending, Prohibited Collection Methods, Administrative Fine, Record Keeping Requirements
Banking and Finance Civil Procedure National Credit Act Reckless Credit Lending Prohibited Collection Methods Administrative Fine Record Keeping Requirements

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Parties

National Credit Regulator

Applicant

Sliksam Cash Loans (Pty) Ltd

Respondent

Procedural Posture

Referral Application / Final Judgment

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act and associated regulations.
  2. 2 Whether the Respondent engaged in reckless credit lending and prohibited collection methods.
  3. 3 Whether the Respondent failed to keep proper records as required by law.

Ratio Decidendi

The Tribunal found that the Respondent, through its Mooi River office, repeatedly contravened multiple provisions of the National Credit Act and associated regulations. The evidence established that the Respondent granted credit without conducting affordability assessments, failed to provide required pre-agreement statements and quotations, charged excessive interest rates, retained prohibited instruments for debt collection, and failed to keep proper records. The Tribunal rejected the Respondent's defence that the Mooi River office operated independently, holding that the Respondent, as the registered credit provider, was responsible for the conduct of all its branches. The seriousness...

Court Disposition

The application is granted. The Respondent is declared to have repeatedly contravened the National Credit Act and associated regulations. An administrative fine of R50,000 is imposed. No order is made regarding the appointment of an auditor or costs.

Orders

  • The Respondent has repeatedly contravened sections 81(2)(a) read with Regulation 23A; 81(3) read with section 80(1)(2); 92(1) read with Regulation 28(1)(a) and (b); 100(1)(d) and 101(1)(d)(ii) read with Regulation 42(1); 133 read with section 90(2)(l); and Regulation 55(1)(b) of the National Credit Act.
  • The Respondent's conduct is declared prohibited in terms of section 150(a) of the National Credit Act.