National Credit Regulator v Pandero Investments 503 CC t/a Iwita Finance (NCT/113131/2018/57(1)) [2019] ZANCT 36 (20 February 2019)

National Credit Regulator v Pandero Investments 503 CC t/a Iwita Finance (NCT/113131/2018/57(1)) [2019] ZANCT 36 (20 February 2019)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, maintain supporting documentation, and inducing consumers to enter into supplementary agreements resulting in excessive service fees. The investigation and referral process...

Source-derived case information.

Citation
[2019] ZANCT 36
Parties
Applicant: National Credit Regulator; Respondent: Pandero Investments 503 CC t/a Iwita Finance
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
20 February 2019
Case Number
NCT/113131/2018/57(1)
Procedural Posture
Review Application / Final Judgment
Outcome
Application for declaration of prohibited conduct granted; Respondent found to have engaged in prohibited conduct under the National Credit Act.
Judges
T Woker, J Simpson, B Dumisa
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Supplementary Agreements, Administrative Fine
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Supplementary Agreements Administrative Fine

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Summary, issues, holding and outcome

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Parties

National Credit Regulator

Applicant

Pandero Investments 503 CC t/a Iwita Finance

Respondent

Procedural Posture

Review Application / Final Judgment

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments and maintain supporting documentation.
  2. 2 Whether the Respondent induced consumers to enter into supplementary agreements resulting in excessive service fees.
  3. 3 Whether the investigation and referral by the Applicant were lawful and procedurally valid.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by failing to conduct proper affordability assessments, maintain supporting documentation, and inducing consumers to enter into supplementary agreements resulting in excessive service fees. The investigation and referral process was lawful and valid, as the NCR had a reasonable basis for initiating the investigation and was not limited to the original complaint. The evidence established that the Respondent engaged in reckless lending and breached statutory limits on service fees. While cancellation of registration was considered, the Tribunal determined that an administrative fine was a proportionate...

Court Disposition

Application for declaration of prohibited conduct granted; Respondent found to have engaged in prohibited conduct under the National Credit Act.

Orders

  • Respondent must appoint an independent auditor at its own cost to audit all credit agreements entered into for three years preceding the judgment, to identify consumers overcharged on service fees.
  • Respondent must reimburse all affected consumers with excess service fees; accounts to be credited or consumers traced and reimbursed.