National Credit Regulator v Standard Bank of South Africa Ltd (40475/2010) [2011] ZAGPJHC 153; 2012 (4) SA 47 (GSJ) (25 October 2011)

National Credit Regulator v Standard Bank of South Africa Ltd (40475/2010) [2011] ZAGPJHC 153; 2012 (4) SA 47 (GSJ) (25 October 2011)

The court held that neither item 7(2) of Schedule 3 to the National Credit Act nor section 12(2)(c) of the Interpretation Act preserved the statutory cap on administration fees imposed by paragraph 3(b)(i) of the schedule to the Usury Act for pre-existing housing loan agreements. The right to charge administration fees and the corresponding obligation to pay them were acquired by contract under common law, not under the repealed statute. The statutory limitation did not confer any additional right or privilege but merely imposed an overriding restriction, which ceased to apply upon repeal. The determination of administration fees for pre-existing agreements is governed by the terms of the...

Citation
[2011] ZAGPJHC 153
Parties
Applicant: National Credit Regulator; Respondent: Standard Bank of South Africa Limited
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
25 October 2011
Case Number
40475/2010
Procedural Posture
Civil Application / First Instance
Outcome
Application dismissed with costs, including costs of two counsel.
Judges
JMA Cane
Legal Topics
Administration Fee Limitation, Transitional Provisions, Contractual Rights, Statutory Repeal Effects
Banking and Finance Civil Procedure Administration Fee Limitation Transitional Provisions Contractual Rights Statutory Repeal Effects

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 7 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

National Credit Regulator

Applicant

Standard Bank of South Africa Limited

Respondent

Procedural Posture

Civil Application / First Instance

Legal Issues

  1. 1 Whether the statutory cap on administration fees under the Usury Act continues to apply to pre-existing housing loan agreements after the Act's repeal by the National Credit Act.
  2. 2 Whether item 7(2) of Schedule 3 to the National Credit Act or section 12(2)(c) of the Interpretation Act preserves the limitation imposed by paragraph 3(b)(i) of the Usury Act.
  3. 3 Whether the determination of administration fees for pre-existing agreements is subject to statutory or common law constraints.

Ratio Decidendi

The court held that neither item 7(2) of Schedule 3 to the National Credit Act nor section 12(2)(c) of the Interpretation Act preserved the statutory cap on administration fees imposed by paragraph 3(b)(i) of the schedule to the Usury Act for pre-existing housing loan agreements. The right to charge administration fees and the corresponding obligation to pay them were acquired by contract under common law, not under the repealed statute. The statutory limitation did not confer any additional right or privilege but merely imposed an overriding restriction, which ceased to apply upon repeal. The determination of administration fees for pre-existing agreements is governed by the terms of the...

Court Disposition

Application dismissed with costs, including costs of two counsel.

Orders

  • The application is dismissed with costs, such costs to include those consequent upon the employment of two counsel.