National Credit Regulator v WQ Prime Cash Loans & Trading (Pty) Ltd (NCT/214099/2021/57(1)) [2022] ZANCT 24 (27 May 2022)

National Credit Regulator v WQ Prime Cash Loans & Trading (Pty) Ltd (NCT/214099/2021/57(1)) [2022] ZANCT 24 (27 May 2022)

The Tribunal found, on the uncontested evidence, that the Respondent repeatedly contravened multiple provisions of the National Credit Act and its Regulations, including failing to conduct proper affordability assessments, granting reckless credit, overcharging interest, failing to provide prescribed documentation, retaining prohibited consumer instruments, and failing to submit required annual returns. The Respondent did not oppose the application or attend the hearing, and thus the Applicant's evidence was accepted as admitted. The Tribunal held that these contraventions were serious, systematic, and placed vulnerable consumers at risk, including those receiving child support grants....

Citation
[2022] ZANCT 24
Parties
Applicant: National Credit Regulator; Respondent: WQ Prime Cash Loans & Trading (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
27 May 2022
Case Number
NCT/214099/2021/57(1)
Procedural Posture
Administrative Application / Default Judgment After Unopposed Application
Outcome
Application granted. Respondent's registration cancelled. Administrative fine imposed. Consumer relief ordered.
Judges
K Moodaliyar, T Woker, T Bailey
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Administrative Penalty, Credit Provider Registration, Consumer Protection
Banking and Finance Administrative Law National Credit Act Reckless Lending Affordability Assessment Administrative Penalty Credit Provider Registration Consumer Protection

Case Brief

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Parties

National Credit Regulator

Applicant

WQ Prime Cash Loans & Trading (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 reckless lending and prohibited conduct.
  3. 3 Whether the Respondent's registration as a credit provider should be cancelled.

Ratio Decidendi

The Tribunal found, on the uncontested evidence, that the Respondent repeatedly contravened multiple provisions of the National Credit Act and its Regulations, including failing to conduct proper affordability assessments, granting reckless credit, overcharging interest, failing to provide prescribed documentation, retaining prohibited consumer instruments, and failing to submit required annual returns. The Respondent did not oppose the application or attend the hearing, and thus the Applicant's evidence was accepted as admitted. The Tribunal held that these contraventions were serious, systematic, and placed vulnerable consumers at risk, including those receiving child support grants....

Court Disposition

Application granted. Respondent's registration cancelled. Administrative fine imposed. Consumer relief ordered.

Orders

  • The Respondent's registration as a credit provider is cancelled with immediate effect.
  • The Respondent must pay an administrative fine of R1,000,000.00 into the National Revenue Fund within 30 days.