Tereblanche v MQ Finance (Pty) Ltd ta Marquis Finance (NCT/313391/2024/141(1)(b)) [2024] ZANCT 32 (3 September 2024)

Tereblanche v MQ Finance (Pty) Ltd ta Marquis Finance (NCT/313391/2024/141(1)(b)) [2024] ZANCT 32 (3 September 2024)

The Tribunal found that the respondent failed to take reasonable steps to assess the applicant’s financial means, prospects, and obligations, and did not properly assess joint consumers’ discretionary income or necessary expenses as required by the NCA and its regulations. The respondent relied on inflated income figures and disregarded the applicant’s actual financial situation, including her unemployment and intended reliance on retrenchment savings. The respondent did not request further information regarding employment status and failed to consider the applicant’s declared living expenses. The Tribunal rejected the respondent’s reliance on section 81(4) as a complete defence, finding...

Citation
[2024] ZANCT 32
Parties
Applicant: Leandi Terblanche; Respondent: MQ Finance (Pty) Ltd ta Marquis Finance
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
3 September 2024
Case Number
NCT/313391/2024/141(1)(b)
Procedural Posture
Review Application / Opposed Application Under Section 141(1)(b) of the National Credit Act
Outcome
Application granted in part; credit agreement cancelled; administrative fine imposed; no refund of instalments; no cost order.
Judges
Z Ntuli, MC Peenze, C Sassman
Legal Topics
Reckless Credit Granting, Affordability Assessment, Administrative Fine, Consumer Protection, Credit Agreement Cancellation
Banking and Finance Civil Procedure Reckless Credit Granting Affordability Assessment Administrative Fine Consumer Protection Credit Agreement Cancellation

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Parties

Leandi Terblanche

Applicant

MQ Finance (Pty) Ltd ta Marquis Finance

Respondent

Procedural Posture

Review Application / Opposed Application Under Section 141(1)(b) of the National Credit Act

Legal Issues

  1. 1 Whether the respondent granted credit to the applicant recklessly in contravention of the National Credit Act.
  2. 2 Whether the respondent failed to take reasonable steps to assess the applicant's financial means, prospects, and obligations.
  3. 3 Whether the respondent failed to assess joint consumers' discretionary income and necessary expenses as required by the regulations.

Ratio Decidendi

The Tribunal found that the respondent failed to take reasonable steps to assess the applicant’s financial means, prospects, and obligations, and did not properly assess joint consumers’ discretionary income or necessary expenses as required by the NCA and its regulations. The respondent relied on inflated income figures and disregarded the applicant’s actual financial situation, including her unemployment and intended reliance on retrenchment savings. The respondent did not request further information regarding employment status and failed to consider the applicant’s declared living expenses. The Tribunal rejected the respondent’s reliance on section 81(4) as a complete defence, finding...

Court Disposition

Application granted in part; credit agreement cancelled; administrative fine imposed; no refund of instalments; no cost order.

Orders

  • The respondent is found to have acted unlawfully and contravened section 81(2)(a)(iii) read with regulations 23A(3) and 23A(12)(a) and (c) of the NCA.
  • The respondent is found to have issued credit recklessly and has contravened section 80(1)(a) of the NCA.