National Credit Regulator v Yon Xing Supermarket (Pty) Ltd (NCT/158492/2020/140(1)) [2022] ZANCT 42 (1 August 2022)

National Credit Regulator v Yon Xing Supermarket (Pty) Ltd (NCT/158492/2020/140(1)) [2022] ZANCT 42 (1 August 2022)

The Tribunal accepted the settlement agreement in which the Respondent admitted to repeated contraventions of the National Credit Act and associated Regulations, including reckless lending, failure to conduct proper affordability assessments, and non-compliance with registration and reporting obligations. The Respondent undertook to appoint an independent auditor to identify affected consumers, write off or refund the cost of credit for all agreements entered into recklessly, rescind judgments, and remove adverse credit listings. The Respondent also agreed to pay an administrative fine of R120,000 in instalments and to conduct staff training to prevent future contraventions. The Tribunal...

Citation
[2022] ZANCT 42
Parties
Applicant: National Credit Regulator; Respondent: Yon Xing Supermarket (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
1 August 2022
Case Number
NCT/158492/2020/140(1)
Procedural Posture
Settlement Agreement / Order Made by Tribunal
Outcome
Settlement agreement made an order of the Tribunal; Respondent admitted liability and agreed to remedial measures and payment of an administrative fine.
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Administrative Fine, Credit Provider Compliance
Banking and Finance Commercial and Corporate National Credit Act Reckless Lending Affordability Assessment Administrative Fine Credit Provider Compliance

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

National Credit Regulator

Applicant

Yon Xing Supermarket (Pty) Ltd

Respondent

Procedural Posture

Settlement Agreement / Order Made by Tribunal

Legal Issues

  1. 1 Whether the Respondent contravened multiple provisions of the National Credit Act and associated Regulations.
  2. 2 Whether the Respondent engaged in prohibited conduct by failing to conduct proper affordability assessments and overcharging interest.
  3. 3 Whether the Respondent failed to comply with its registration conditions and record-keeping obligations.

Ratio Decidendi

The Tribunal accepted the settlement agreement in which the Respondent admitted to repeated contraventions of the National Credit Act and associated Regulations, including reckless lending, failure to conduct proper affordability assessments, and non-compliance with registration and reporting obligations. The Respondent undertook to appoint an independent auditor to identify affected consumers, write off or refund the cost of credit for all agreements entered into recklessly, rescind judgments, and remove adverse credit listings. The Respondent also agreed to pay an administrative fine of R120,000 in instalments and to conduct staff training to prevent future contraventions. The Tribunal...

Court Disposition

Settlement agreement made an order of the Tribunal; Respondent admitted liability and agreed to remedial measures and payment of an administrative fine.

Orders

  • The Respondent must appoint an independent auditor within 5 business days to conduct a compliance audit of all credit agreements concluded in the preceding three years.
  • The Respondent must write off or refund the cost of credit for all agreements entered into recklessly, as identified by the audit.