National Credit Regulator v Werlan Cash Loans (NCT/3867/2012/57(1)) [2013] ZANCT 5 (13 February 2013)

National Credit Regulator v Werlan Cash Loans (NCT/3867/2012/57(1)) [2013] ZANCT 5 (13 February 2013)

The Tribunal found that the respondent repeatedly contravened the National Credit Act by operating as a credit provider under more than 100 credit agreements without registration, rendering those agreements unlawful and void. The respondent also failed to disclose interest rates as a monthly rate, violating Regulation 42(1)(b). The respondent did not comply with a compliance notice, constituting prohibited conduct. The Tribunal held that the absence of evidence regarding annual turnover does not preclude the imposition of an administrative fine, as the Act provides for an alternative maximum penalty of R1,000,000. Considering the nature, duration, gravity, and extent of the...

Citation
[2013] ZANCT 5
Parties
Applicant: National Credit Regulator; Respondent: Werlan Cash Loans t/a Lebathu Finance
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
13 February 2013
Case Number
NCT/3867/2012/57(1)
Procedural Posture
Administrative Application / Default Judgment After Respondent Failed to Answer Application.
Outcome
Application granted. The respondent was found to have committed prohibited conduct and was ordered to pay an administrative fine.
Judges
D Terblanche, X May, P Beck
Legal Topics
Credit Provider Registration, Unlawful Credit Agreements, Administrative Fine, Interest Rate Disclosure, Compliance Notice, Prohibited Conduct
Banking and Finance Administrative Law Credit Provider Registration Unlawful Credit Agreements Administrative Fine Interest Rate Disclosure Compliance Notice Prohibited Conduct

Case Brief

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Parties

National Credit Regulator

Applicant

Werlan Cash Loans t/a Lebathu Finance

Respondent

Procedural Posture

Administrative Application / Default Judgment After Respondent Failed to Answer Application.

Legal Issues

  1. 1 Whether the respondent contravened section 40(1), 40(3), 40(4), and 89(2)(d) of the National Credit Act by operating as a credit provider without registration.
  2. 2 Whether the respondent contravened Regulation 42(1)(b) by failing to disclose interest rates as a monthly rate.
  3. 3 Whether the respondent failed to comply with a compliance notice issued by the applicant.

Ratio Decidendi

The Tribunal found that the respondent repeatedly contravened the National Credit Act by operating as a credit provider under more than 100 credit agreements without registration, rendering those agreements unlawful and void. The respondent also failed to disclose interest rates as a monthly rate, violating Regulation 42(1)(b). The respondent did not comply with a compliance notice, constituting prohibited conduct. The Tribunal held that the absence of evidence regarding annual turnover does not preclude the imposition of an administrative fine, as the Act provides for an alternative maximum penalty of R1,000,000. Considering the nature, duration, gravity, and extent of the...

Court Disposition

Application granted. The respondent was found to have committed prohibited conduct and was ordered to pay an administrative fine.

Orders

  • The repeated contravention of section 40(1) read with sections 40(3), 40(4), and 89(2)(d) of the Act by the respondent is declared prohibited conduct in terms of section 150(a).
  • The repeated contravention of Regulation 42(1)(b) of the Act by the respondent is declared prohibited conduct in terms of section 150(a).