Olyn v African Bank Ltd and Others (NCT/286/2009/138(1) (P)) [2010] ZANCT 49 (6 May 2010)

Olyn v African Bank Ltd and Others (NCT/286/2009/138(1) (P)) [2010] ZANCT 49 (6 May 2010)

The Tribunal found that the interest rate of 37% per annum charged by Capitec Bank on one of the applicant's loans exceeded the statutory maximum of 35.4% as calculated under Regulation 42 Table A of the National Credit Act. As the consent agreement proposed an interest rate above the legal limit, the Tribunal refused to grant the consent order. The Tribunal referred the matter to the National Credit Regulator to investigate whether Capitec Bank's conduct constituted prohibited conduct under the Act, and requested a report within one month.

Citation
[2010] ZANCT 49
Parties
Applicant: Maria Magdalen Olyn; Respondent: African Bank Limited; Respondent: Capitec Bank Limited; Respondent: Nedbank Limited
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
6 May 2010
Case Number
NCT/286/2009/138(1) (P)
Procedural Posture
Consent Order Application / Final Determination
Outcome
Application for a consent order refused. Matter referred to the National Credit Regulator for investigation.
Judges
T Woker
Legal Topics
National Credit Act, Debt Review, Interest Rate Regulation, Consent Order, Prohibited Conduct
Banking and Finance Civil Procedure National Credit Act Debt Review Interest Rate Regulation Consent Order Prohibited Conduct

Case Brief

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Parties

Maria Magdalen Olyn

Applicant

African Bank Limited

Respondent

Capitec Bank Limited

Respondent

Nedbank Limited

Respondent

Procedural Posture

Consent Order Application / Final Determination

Legal Issues

  1. 1 Whether the interest rates charged by Capitec Bank in the consent agreement exceed the statutory maximum allowed under the National Credit Act and its regulations.
  2. 2 Whether the Tribunal should grant a consent order under section 86(8) read with section 138 of the National Credit Act given the interest rates agreed.
  3. 3 Whether the matter should be referred to the National Credit Regulator for investigation of prohibited conduct.

Ratio Decidendi

The Tribunal found that the interest rate of 37% per annum charged by Capitec Bank on one of the applicant's loans exceeded the statutory maximum of 35.4% as calculated under Regulation 42 Table A of the National Credit Act. As the consent agreement proposed an interest rate above the legal limit, the Tribunal refused to grant the consent order. The Tribunal referred the matter to the National Credit Regulator to investigate whether Capitec Bank's conduct constituted prohibited conduct under the Act, and requested a report within one month.

Court Disposition

Application for a consent order refused. Matter referred to the National Credit Regulator for investigation.

Orders

  • The application for a consent order is refused.
  • The matter is referred to the National Credit Regulator to investigate possible prohibited conduct by Capitec Bank.