National Credit Regulator v Standard Bank of SA Ltd (231/12) [2012] ZASCA 176; 2013 (1) SA 628 (SCA); [2013] 1 All SA 335 (SCA) (29 November 2012)

National Credit Regulator v Standard Bank of SA Ltd (231/12) [2012] ZASCA 176; 2013 (1) SA 628 (SCA); [2013] 1 All SA 335 (SCA) (29 November 2012)

The Supreme Court of Appeal held that the administration fee restriction imposed by the Usury Act on housing loans existing at the time the National Credit Act came into operation survived the transition. The respondent is not entitled to charge an administration fee in excess of that provided for in paragraph 3(b)(i) of the Schedule to the Usury Act unless and until that fee is amended under section 105(1) of the National Credit Act. The court found that the statutory restriction was not repealed or amended by the National Credit Act and thus remains operative for existing loans.

Citation
[2012] ZASCA 176
Parties
Appellant: National Credit Regulator; Respondent: Standard Bank of South Africa Limited
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
29 November 2012
Case Number
231/12
Procedural Posture
Civil Appeal / Appeal From South Gauteng High Court, Johannesburg
Outcome
Appeal upheld with costs, including costs of two counsel. Order of the court below set aside and replaced with declaratory relief in favour of the appellant.
Judges
Nugent, Ponnan, Malan, Pillay, Saldulker
Legal Topics
National Credit Act, Usury Act Administration Fees, Housing Loans, Statutory Transition, Declaratory Relief
Banking and Finance Civil Procedure National Credit Act Usury Act Administration Fees Housing Loans Statutory Transition Declaratory Relief

Case Brief

Summary, issues, holding and outcome

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Parties

National Credit Regulator

Appellant

Standard Bank of South Africa Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From South Gauteng High Court, Johannesburg

Legal Issues

  1. 1 Whether Standard Bank is entitled to charge administration fees on housing loans existing at the commencement of the National Credit Act in excess of the fee provided for in the Usury Act.
  2. 2 Whether the administration fee restriction under the Usury Act survived the transition to the National Credit Act.

Ratio Decidendi

The Supreme Court of Appeal held that the administration fee restriction imposed by the Usury Act on housing loans existing at the time the National Credit Act came into operation survived the transition. The respondent is not entitled to charge an administration fee in excess of that provided for in paragraph 3(b)(i) of the Schedule to the Usury Act unless and until that fee is amended under section 105(1) of the National Credit Act. The court found that the statutory restriction was not repealed or amended by the National Credit Act and thus remains operative for existing loans.

Court Disposition

Appeal upheld with costs, including costs of two counsel. Order of the court below set aside and replaced with declaratory relief in favour of the appellant.

Orders

  • It is declared that the respondent is not entitled to charge an administration fee on housing loans that existed at the time the National Credit Act 34 of 2005 came into operation in excess of the fee provided for in paragraph 3(b)(i) of the Schedule to the Usury Act 73 of 1968 unless and until that fee is amended...
  • The respondent is ordered to pay the costs of the appeal, including the costs of two counsel.