National Credit Regulator v VICO (Pty) Ltd Trading as Financial Services Cash Loans (NCT/223355/2022/57(1)) [2022] ZANCT 27 (21 June 2022)

National Credit Regulator v VICO (Pty) Ltd Trading as Financial Services Cash Loans (NCT/223355/2022/57(1)) [2022] ZANCT 27 (21 June 2022)

The Tribunal found that the Respondent repeatedly contravened several provisions of the National Credit Act and its regulations, including failing to conduct proper affordability assessments, overcharging service fees, failing to provide prescribed documentation, and engaging in reckless lending. The Respondent did not oppose the application or appear at the hearing, and all allegations were deemed admitted. The Tribunal concluded that the Applicant was entitled to the relief sought, including cancellation of the Respondent's registration as a credit provider, declaration of certain credit agreements as reckless, setting aside consumer obligations under those agreements, refund orders,...

Citation
[2022] ZANCT 27
Parties
Applicant: National Credit Regulator; Respondent: Viico (Pty) Ltd trading as Financial Services Cash Loans
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
21 June 2022
Case Number
NCT/223355/2022/57(1)
Procedural Posture
Review Application / Default Judgment After Respondent Failed to File Answering Affidavit or Appear at Hearing.
Outcome
Application granted in substantial part. Respondent found to have repeatedly contravened the National Credit Act. Registration as credit provider cancelled. Administrative fine imposed. Remedial orders granted for affected consumers.
Judges
A Potwana, M Peenze, T Bailey
Legal Topics
National Credit Act, Reckless Lending, Administrative Fine, Credit Provider Registration, Consumer Protection, Default Judgment
Banking and Finance Civil Procedure National Credit Act Reckless Lending Administrative Fine Credit Provider Registration Consumer Protection Default Judgment

Case Brief

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Parties

National Credit Regulator

Applicant

Viico (Pty) Ltd trading as Financial Services Cash Loans

Respondent

Procedural Posture

Review Application / Default Judgment After Respondent Failed to File Answering Affidavit or Appear at Hearing.

Legal Issues

  1. 1 Did the Respondent contravene multiple provisions of the National Credit Act and its regulations as alleged by the Applicant?
  2. 2 Is the Applicant entitled to cancellation of the Respondent's registration, imposition of an administrative fine, and other remedial orders for affected consumers?
  3. 3 Should the Tribunal grant the Applicant's requested relief, including refund orders and interdicts?

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened several provisions of the National Credit Act and its regulations, including failing to conduct proper affordability assessments, overcharging service fees, failing to provide prescribed documentation, and engaging in reckless lending. The Respondent did not oppose the application or appear at the hearing, and all allegations were deemed admitted. The Tribunal concluded that the Applicant was entitled to the relief sought, including cancellation of the Respondent's registration as a credit provider, declaration of certain credit agreements as reckless, setting aside consumer obligations under those agreements, refund orders,...

Court Disposition

Application granted in substantial part. Respondent found to have repeatedly contravened the National Credit Act. Registration as credit provider cancelled. Administrative fine imposed. Remedial orders granted for affected consumers.

Orders

  • The Respondent is found guilty of repeatedly contravening specified sections of the National Credit Act and its regulations.
  • The Respondent's conduct constitutes prohibited conduct under section 150(a) of the National Credit Act.