National Credit Regulator v Wang Sheng Clothing Trading CC t/a Carrefour Cash Loans (NCT/149000/2019/140(1)) [2020] ZANCT 18 (16 September 2020)

National Credit Regulator v Wang Sheng Clothing Trading CC t/a Carrefour Cash Loans (NCT/149000/2019/140(1)) [2020] ZANCT 18 (16 September 2020)

The Tribunal found that the Respondent repeatedly contravened multiple provisions of the National Credit Act and associated regulations by failing to conduct proper affordability assessments, granting reckless credit, overcharging consumers on interest, initiation fees, service fees, and credit life insurance, and failing to provide pre-agreement statements and quotations in the prescribed form. The Respondent also failed to file required statistical and financial returns. The evidence presented by the Applicant was uncontested and demonstrated ongoing prohibited conduct. The Tribunal held that the Respondent's actions exploited vulnerable consumers, caused financial harm, and displayed...

Citation
[2020] ZANCT 18
Parties
Applicant: National Credit Regulator; Respondent: Wang Sheng Clothing Trading CC t/a Carrefour Cash Loans
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
16 September 2020
Case Number
NCT/149000/2019/140(1)
Procedural Posture
Default Application / Judgment on Application for Prohibited Conduct and Administrative Penalty
Outcome
The application is granted. The Respondent is found to have repeatedly contravened the National Credit Act and associated regulations. An administrative fine of R100,000 is imposed, and further remedial orders are made.
Judges
P A Beck, T Woker, B Dumisa
Legal Topics
National Credit Act, Reckless Credit Granting, Affordability Assessment, Excessive Interest, Administrative Fine, Consumer Protection
Banking and Finance Commercial and Corporate Civil Procedure National Credit Act Reckless Credit Granting Affordability Assessment Excessive Interest Administrative Fine +1 more

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Parties

National Credit Regulator

Applicant

Wang Sheng Clothing Trading CC t/a Carrefour Cash Loans

Respondent

Procedural Posture

Default Application / Judgment on Application for Prohibited Conduct and Administrative Penalty

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act and associated regulations.
  2. 2 Whether the Respondent engaged in prohibited conduct by failing to conduct proper affordability assessments and granting reckless credit.
  3. 3 Whether the Respondent overcharged consumers on interest, initiation fees, service fees, and credit life insurance.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened multiple provisions of the National Credit Act and associated regulations by failing to conduct proper affordability assessments, granting reckless credit, overcharging consumers on interest, initiation fees, service fees, and credit life insurance, and failing to provide pre-agreement statements and quotations in the prescribed form. The Respondent also failed to file required statistical and financial returns. The evidence presented by the Applicant was uncontested and demonstrated ongoing prohibited conduct. The Tribunal held that the Respondent's actions exploited vulnerable consumers, caused financial harm, and displayed...

Court Disposition

The application is granted. The Respondent is found to have repeatedly contravened the National Credit Act and associated regulations. An administrative fine of R100,000 is imposed, and further remedial orders are made.

Orders

  • The Respondent must pay an administrative fine of R100,000 into the National Revenue Fund within 30 days of the judgment.
  • The Respondent must appoint an independent auditor, at its own cost and subject to the Applicant's approval, within 30 days to identify all credit agreements entered into in the preceding three years, affected consumers, and amounts to be refunded.