Tengizak CC v National Credit Regulator (A369/2018) [2020] ZAGPPHC 599 (28 September 2020)

Tengizak CC v National Credit Regulator (A369/2018) [2020] ZAGPPHC 599 (28 September 2020)

The court held that the pick-up/delivery fee charged by the appellant was optional and not a mandatory cost of credit under the National Credit Act. The consumer was given a choice to accept or decline the service, and no obligation was imposed to pay the fee. The Tribunal erred in finding that the appellant engaged in prohibited conduct by charging such fees. The appeal was upheld, and the Tribunal's order regarding pick-up/delivery fees was set aside. The appellant was entitled to its costs as it was substantially successful.

Citation
[2020] ZAGPPHC 599
Parties
Appellant: Tengizak CC; Respondent: National Credit Regulator
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
28 September 2020
Case Number
A369/2018
Procedural Posture
Civil Appeal / Appeal From National Consumer Tribunal to Full Court
Outcome
Appeal upheld; Tribunal's order set aside; complaint regarding pick-up/delivery fees dismissed; costs awarded to appellant.
Judges
Basson, Meyer, Fourie
Legal Topics
National Credit Act, Reckless Credit, Prohibited Fees, Appeal Procedure
Commercial and Corporate Civil Procedure National Credit Act Reckless Credit Prohibited Fees Appeal Procedure

Case Brief

Summary, issues, holding and outcome

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Parties

Tengizak CC

Appellant

National Credit Regulator

Respondent

Procedural Posture

Civil Appeal / Appeal From National Consumer Tribunal to Full Court

Legal Issues

  1. 1 Whether the appellant contravened the National Credit Act by charging optional pick-up/delivery fees to consumers.
  2. 2 Whether the Tribunal erred in finding that the appellant engaged in prohibited conduct under the NCA.
  3. 3 Whether the Tribunal's order regarding pick-up/delivery fees should be set aside.

Ratio Decidendi

The court held that the pick-up/delivery fee charged by the appellant was optional and not a mandatory cost of credit under the National Credit Act. The consumer was given a choice to accept or decline the service, and no obligation was imposed to pay the fee. The Tribunal erred in finding that the appellant engaged in prohibited conduct by charging such fees. The appeal was upheld, and the Tribunal's order regarding pick-up/delivery fees was set aside. The appellant was entitled to its costs as it was substantially successful.

Court Disposition

Appeal upheld; Tribunal's order set aside; complaint regarding pick-up/delivery fees dismissed; costs awarded to appellant.

Orders

  • The appeal is upheld with costs.
  • The order made by the National Consumer Tribunal in subparagraphs 63.1 - 63.5 of its Judgment and Reasons is set aside and replaced with the following order: 'The complaint of the National Credit Regulator that the respondent engaged in conduct which is prohibited by the National Credit Act 34 of 2005 in charging...