National Credit Regulator v Tsoelli (Pty) Ltd t/a Tswelopele Cash Loans (NCT/266734/2023/57(1)) [2023] ZANCT 26 (6 July 2023)

National Credit Regulator v Tsoelli (Pty) Ltd t/a Tswelopele Cash Loans (NCT/266734/2023/57(1)) [2023] ZANCT 26 (6 July 2023)

The Tribunal found that the respondent repeatedly contravened the National Credit Act and associated regulations by failing to conduct proper affordability assessments, overcharging interest, failing to provide prescribed documentation, unlawfully enforcing credit agreements, and failing to comply with registration and reporting obligations. These contraventions constituted prohibited conduct and brought the consumer credit industry into disrepute. The respondent's registration as a credit provider was cancelled, its credit agreements with consumers declared reckless, and it was ordered to appoint an auditor to investigate further contraventions and to pay an administrative fine. The...

Citation
[2023] ZANCT 26
Parties
Applicant: National Credit Regulator; Respondent: Tsoelli (Pty) Ltd t/a Tswelopele Cash Loans
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
6 July 2023
Case Number
NCT/266734/2023/57(1)
Procedural Posture
Cancellation Application / Default Judgment; Unopposed Hearing
Outcome
Application granted. Respondent's registration as a credit provider cancelled. Credit agreements declared reckless. Administrative fine imposed.
Judges
S Hockey, M Peenze, Z Ntuli
Legal Topics
Reckless Credit, Affordability Assessment, Overcharging of Interest, Prohibited Conduct, Administrative Fine, Credit Provider Registration
Banking and Finance Civil Procedure Reckless Credit Affordability Assessment Overcharging of Interest Prohibited Conduct Administrative Fine Credit Provider Registration

Case Brief

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Parties

National Credit Regulator

Applicant

Tsoelli (Pty) Ltd t/a Tswelopele Cash Loans

Respondent

Procedural Posture

Cancellation Application / Default Judgment; Unopposed Hearing

Legal Issues

  1. 1 Whether the respondent contravened the National Credit Act and associated regulations in its lending practices.
  2. 2 Whether the respondent extended reckless credit to consumers.
  3. 3 Whether the respondent overcharged interest and failed to provide prescribed documentation to consumers.

Ratio Decidendi

The Tribunal found that the respondent repeatedly contravened the National Credit Act and associated regulations by failing to conduct proper affordability assessments, overcharging interest, failing to provide prescribed documentation, unlawfully enforcing credit agreements, and failing to comply with registration and reporting obligations. These contraventions constituted prohibited conduct and brought the consumer credit industry into disrepute. The respondent's registration as a credit provider was cancelled, its credit agreements with consumers declared reckless, and it was ordered to appoint an auditor to investigate further contraventions and to pay an administrative fine. The...

Court Disposition

Application granted. Respondent's registration as a credit provider cancelled. Credit agreements declared reckless. Administrative fine imposed.

Orders

  • The respondent has repeatedly contravened sections, regulations, and conditions of registration as detailed in the judgment.
  • The respondent's conduct is declared prohibited conduct under section 150(a) of the NCA.