National Credit Regulator v Veloz Cash Loans (Pty) Ltd (NCT/214107/2022/57(1)) [2022] ZANCT 17 (12 March 2022)

National Credit Regulator v Veloz Cash Loans (Pty) Ltd (NCT/214107/2022/57(1)) [2022] ZANCT 17 (12 March 2022)

The Tribunal found that the respondent repeatedly contravened the National Credit Act and its Regulations by failing to conduct proper affordability assessments, entering into reckless credit agreements, issuing credit agreements not in the prescribed form, charging excessive interest and prohibited fees, and including unlawful provisions in its agreements. The respondent failed to oppose the application or provide any defence. The evidence from sampled consumer files and the investigation report demonstrated systemic disregard for statutory requirements and consumer rights. The Tribunal held that these contraventions were serious, affected vulnerable consumers, and brought the consumer...

Citation
[2022] ZANCT 17
Parties
Applicant: National Credit Regulator; Respondent: Veloz Cash Loans (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
12 March 2022
Case Number
NCT/214107/2022/57(1)
Procedural Posture
Administrative Application / Default Judgment After Unopposed Application
Outcome
Application granted. Respondent declared to have engaged in prohibited conduct and repeatedly contravened the National Credit Act and Regulations. Administrative fine imposed. Sampled agreements declared reckless and set aside. Further remedial orders granted.
Judges
P A Beck, M Peenze, F Sibanda
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Administrative Fine, Unlawful Contract Terms, Statutory Reporting
Banking and Finance Commercial and Corporate Civil Procedure National Credit Act Reckless Lending Affordability Assessment Administrative Fine Unlawful Contract Terms +1 more

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Parties

National Credit Regulator

Applicant

Veloz Cash Loans (Pty) Ltd

Respondent

Procedural Posture

Administrative Application / Default Judgment After Unopposed Application

Legal Issues

  1. 1 Whether the respondent repeatedly contravened the National Credit Act and its Regulations.
  2. 2 Whether the respondent engaged in prohibited conduct by failing to conduct proper affordability assessments, issuing unlawful credit agreements, and charging prohibited fees.
  3. 3 Whether the Tribunal should impose an administrative fine and grant further remedial orders.

Ratio Decidendi

The Tribunal found that the respondent repeatedly contravened the National Credit Act and its Regulations by failing to conduct proper affordability assessments, entering into reckless credit agreements, issuing credit agreements not in the prescribed form, charging excessive interest and prohibited fees, and including unlawful provisions in its agreements. The respondent failed to oppose the application or provide any defence. The evidence from sampled consumer files and the investigation report demonstrated systemic disregard for statutory requirements and consumer rights. The Tribunal held that these contraventions were serious, affected vulnerable consumers, and brought the consumer...

Court Disposition

Application granted. Respondent declared to have engaged in prohibited conduct and repeatedly contravened the National Credit Act and Regulations. Administrative fine imposed. Sampled agreements declared reckless and set aside. Further remedial orders granted.

Orders

  • The respondent is declared to have engaged in prohibited conduct by repeatedly contravening the National Credit Act, Regulations, and conditions of registration.
  • The respondent is interdicted from engaging in prohibited conduct in the future.