National Credit Regulator v Tengizak CC (NCT/91474/2017/57(1)) [2018] ZANCT 47 (2 July 2018)

National Credit Regulator v Tengizak CC (NCT/91474/2017/57(1)) [2018] ZANCT 47 (2 July 2018)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, charging unlawful delivery and pick-up fees as part of credit agreements, and failing to provide pre-agreement statements and quotations in the prescribed form. The Respondent's business model exploited vulnerable consumers, particularly domestic workers, by imposing excessive and recurring fees, which were not adequately explained or justified. Although the Respondent cooperated with the investigation and had not previously been found in contravention of the Act, the evidence demonstrated ongoing prohibited conduct. The Tribunal determined that...

Citation
[2018] ZANCT 47
Parties
Applicant: National Credit Regulator; Respondent: Tengizak CC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
2 July 2018
Case Number
NCT/91474/2017/57(1)
Procedural Posture
Review Application / Judgment and Reasons
Outcome
The Tribunal declared the Respondent's conduct prohibited, ordered refunds to affected consumers, required appointment of an auditor, and mandated monthly status reports to the Applicant. No administrative fine or cancellation of registration was imposed.
Judges
Penelope Beck, Nomfundo Maseti, Trevor Bailey
Legal Topics
National Credit Act, Affordability Assessment, Unlawful Credit Fees, Record Keeping Requirements, Administrative Fine, Consumer Refund
Banking and Finance Civil Procedure National Credit Act Affordability Assessment Unlawful Credit Fees Record Keeping Requirements Administrative Fine Consumer Refund

Case Brief

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Parties

National Credit Regulator

Applicant

Tengizak CC

Respondent

Procedural Posture

Review Application / Judgment and Reasons

Legal Issues

  1. 1 Whether the Respondent failed to conduct proper affordability assessments as required by the National Credit Act.
  2. 2 Whether the Respondent unlawfully charged delivery and pick-up fees on credit agreements in contravention of the Act.
  3. 3 Whether the Respondent's pre-agreement statements and quotations were in the prescribed form.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, charging unlawful delivery and pick-up fees as part of credit agreements, and failing to provide pre-agreement statements and quotations in the prescribed form. The Respondent's business model exploited vulnerable consumers, particularly domestic workers, by imposing excessive and recurring fees, which were not adequately explained or justified. Although the Respondent cooperated with the investigation and had not previously been found in contravention of the Act, the evidence demonstrated ongoing prohibited conduct. The Tribunal determined that...

Court Disposition

The Tribunal declared the Respondent's conduct prohibited, ordered refunds to affected consumers, required appointment of an auditor, and mandated monthly status reports to the Applicant. No administrative fine or cancellation of registration was imposed.

Orders

  • The Respondent's repeated contravention of the Act and Regulations is declared prohibited conduct.
  • The Respondent is ordered to refund all consumers charged delivery and/or pick-up fees from 2015 to date by 31 October 2018.