Summit Financial Partners (Pty) Ltd v Direct Axis Sa (Pty) Ltd and Others (NCT/177859/2021/141(1)(b)) [2022] ZANCT 69 (17 November 2022)

Summit Financial Partners (Pty) Ltd v Direct Axis Sa (Pty) Ltd and Others (NCT/177859/2021/141(1)(b)) [2022] ZANCT 69 (17 November 2022)

The Tribunal found that Direct Axis complied with the requirements of the National Credit Act and its Regulations when assessing the consumers' financial means, prospects, and obligations. The evidence showed that Direct Axis only accepted living expenses below the minimum expense norms table where exceptional circumstances were declared by the consumers, such as third-party payments, and that the Regulation 23A(11) questionnaire was properly completed. The Tribunal held that there is no legal obligation for credit providers to independently verify consumer expense declarations unless expressly required by the Regulations or where there are indications of unreliability. The Applicant...

Citation
[2022] ZANCT 69
Parties
Applicant: Summit Financial Partners (Pty) Ltd; Respondent: Direct Axis SA (Pty) Ltd; Respondent: Calldirect; Respondent: FirstRand Bank Limited; Respondent: National Credit Regulator
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
17 November 2022
Case Number
NCT/177859/2021/141(1)(b)
Procedural Posture
Review Application / Application for Leave to Refer Complaint After Non Referral by NCR
Outcome
Application dismissed; no order as to costs.
Judges
MC Peenze, K Moodaliyar, C Sassman
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Minimum Expense Norms, Consumer Protection
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Minimum Expense Norms Consumer Protection

Case Brief

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Parties

Summit Financial Partners (Pty) Ltd

Applicant

Direct Axis SA (Pty) Ltd

Respondent

Calldirect

Respondent

FirstRand Bank Limited

Respondent

National Credit Regulator

Respondent

Procedural Posture

Review Application / Application for Leave to Refer Complaint After Non Referral by NCR

Legal Issues

  1. 1 Whether the Respondents contravened the National Credit Act by granting credit recklessly to consumers without proper affordability assessments.
  2. 2 Whether Direct Axis unlawfully deviated from the minimum expense norms table in Regulation 23A(10) and applied Regulation 23A(11) as a default practice.
  3. 3 Whether the credit provider is legally obliged to verify third-party payments or consumer expense declarations under Regulation 23A(11).

Ratio Decidendi

The Tribunal found that Direct Axis complied with the requirements of the National Credit Act and its Regulations when assessing the consumers' financial means, prospects, and obligations. The evidence showed that Direct Axis only accepted living expenses below the minimum expense norms table where exceptional circumstances were declared by the consumers, such as third-party payments, and that the Regulation 23A(11) questionnaire was properly completed. The Tribunal held that there is no legal obligation for credit providers to independently verify consumer expense declarations unless expressly required by the Regulations or where there are indications of unreliability. The Applicant...

Court Disposition

Application dismissed; no order as to costs.

Orders

  • The Applicant’s application is dismissed.
  • There is no order as to costs.