National Credit Regulator v Cash Converters South Africa and Others (NCT/18013/2014/140(1)) [2015] ZANCT 12 (27 February 2015)

National Credit Regulator v Cash Converters South Africa and Others (NCT/18013/2014/140(1)) [2015] ZANCT 12 (27 February 2015)

The Tribunal found that the Third Respondent repeatedly contravened the National Credit Act by failing to keep proper records of affordability assessments, charging consumers excessive administrative fees, and relying on an unlawful exclusion clause to avoid compensating consumers for lost or damaged goods. The Third Respondent did not participate in the proceedings or oppose the application, resulting in the Applicant's allegations being deemed admitted. The Tribunal declared the conduct prohibited, interdicted further contraventions, ordered the submission of revised documentation, and imposed an administrative fine of R400,000. The Tribunal declined to order repayment for lost or...

Citation
[2015] ZANCT 12
Parties
Applicant: National Credit Regulator; Respondent: Cash Converters South Africa; Respondent: Pre-Owned Asset Trading CC t/a Cash Converters Benoni; Respondent: Manzisec CC t/a Cash Converters Boksburg; Respondent: Kiadev Trading (Pty) Ltd t/a Cash Converters Kempton Park
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
27 February 2015
Case Number
NCT/18013/2014/140(1)
Procedural Posture
Administrative Application / Default Judgment and Consent Order
Outcome
The application against the Third Respondent succeeded. The Tribunal declared the conduct prohibited, interdicted further contraventions, ordered submission of revised documentation, and imposed an administrative fine.
Judges
D Terblanche, B Dumisa, H Devraj
Legal Topics
National Credit Act, Reckless Credit, Administrative Fine, Unlawful Exclusion Clause, Excessive Fees, Consumer Protection
Banking and Finance Commercial and Corporate National Credit Act Reckless Credit Administrative Fine Unlawful Exclusion Clause Excessive Fees Consumer Protection

Case Brief

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Parties

National Credit Regulator

Applicant

Cash Converters South Africa

Respondent

Pre-Owned Asset Trading CC t/a Cash Converters Benoni

Respondent

Manzisec CC t/a Cash Converters Boksburg

Respondent

Kiadev Trading (Pty) Ltd t/a Cash Converters Kempton Park

Respondent

Procedural Posture

Administrative Application / Default Judgment and Consent Order

Legal Issues

  1. 1 Whether the Third Respondent engaged in prohibited conduct under the National Credit Act.
  2. 2 Whether the Third Respondent charged consumers excessive fees in contravention of prescribed limits.
  3. 3 Whether the exclusion clause in the Pre-Agreement Statement and Quotation is unlawful.

Ratio Decidendi

The Tribunal found that the Third Respondent repeatedly contravened the National Credit Act by failing to keep proper records of affordability assessments, charging consumers excessive administrative fees, and relying on an unlawful exclusion clause to avoid compensating consumers for lost or damaged goods. The Third Respondent did not participate in the proceedings or oppose the application, resulting in the Applicant's allegations being deemed admitted. The Tribunal declared the conduct prohibited, interdicted further contraventions, ordered the submission of revised documentation, and imposed an administrative fine of R400,000. The Tribunal declined to order repayment for lost or...

Court Disposition

The application against the Third Respondent succeeded. The Tribunal declared the conduct prohibited, interdicted further contraventions, ordered submission of revised documentation, and imposed an administrative fine.

Orders

  • The Third Respondent's conduct is declared prohibited under the National Credit Act.
  • The Third Respondent is interdicted from using the Pre-Agreement Statement and Quotation containing the unlawful exclusion clause.