National Credit Regulator v Thuso Ya Potlako Trading and Projects (Pty) Ltd (NCT/318853/2024/57(1)) [2024] ZANCT 19 (21 July 2024)

National Credit Regulator v Thuso Ya Potlako Trading and Projects (Pty) Ltd (NCT/318853/2024/57(1)) [2024] ZANCT 19 (21 July 2024)

The Tribunal found that the respondent, a registered credit provider, repeatedly contravened the National Credit Act and its regulations by failing to conduct affordability assessments, granting reckless credit, not providing pre-agreement statements or credit agreements in the prescribed form, unlawfully possessing consumer instruments, and failing to comply with registration conditions and statutory reporting obligations. The respondent admitted all allegations by failing to respond. The Tribunal declared the contraventions prohibited conduct, found the sampled agreements reckless, prohibited the respondent from collecting on those agreements, and cancelled the respondent's...

Citation
[2024] ZANCT 19
Parties
Applicant: National Credit Regulator; Respondent: Thuso Ya Potlako Trading and Projects (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
21 July 2024
Case Number
NCT/318853/2024/57(1)
Procedural Posture
Review Application / Default Hearing; Application for Cancellation of Registration and Administrative Penalty
Outcome
Application granted. Respondent's registration cancelled. Administrative fine imposed. Further investigation ordered.
Judges
N Maseti, Z Ntuli, MC Peenze
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Prohibited Conduct, Administrative Penalty, Credit Provider Registration
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Prohibited Conduct Administrative Penalty Credit Provider Registration

Case Brief

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Parties

National Credit Regulator

Applicant

Thuso Ya Potlako Trading and Projects (Pty) Ltd

Respondent

Procedural Posture

Review Application / Default Hearing; Application for Cancellation of Registration and Administrative Penalty

Legal Issues

  1. 1 Whether the respondent contravened sections of the National Credit Act and its regulations.
  2. 2 Whether the respondent failed to conduct affordability assessments and granted reckless credit.
  3. 3 Whether the respondent failed to provide pre-agreement statements and credit agreements in the prescribed form.

Ratio Decidendi

The Tribunal found that the respondent, a registered credit provider, repeatedly contravened the National Credit Act and its regulations by failing to conduct affordability assessments, granting reckless credit, not providing pre-agreement statements or credit agreements in the prescribed form, unlawfully possessing consumer instruments, and failing to comply with registration conditions and statutory reporting obligations. The respondent admitted all allegations by failing to respond. The Tribunal declared the contraventions prohibited conduct, found the sampled agreements reckless, prohibited the respondent from collecting on those agreements, and cancelled the respondent's...

Court Disposition

Application granted. Respondent's registration cancelled. Administrative fine imposed. Further investigation ordered.

Orders

  • It is declared that the respondent contravened multiple sections of the National Credit Act and its regulations as listed in paragraph 50.1.
  • The contraventions are declared prohibited conduct.