South Africa Case Law

National Credit Regulator v National Consumer Tribunal and Another (A289/2021; A288/2021; A104\2019)

National Credit Regulator v National Consumer Tribunal and Another (A289/2021; A288/2021; A104\2019) [2023] ZAGPPHC 24 (20 January 2023)

Court

North Gauteng High Court, Pretoria

Case number

A289/2021; A288/2021; A104\2019

Judges

Malungana, Millar, Moshoana

The majority held that vehicle financiers did not contravene sections 100, 101, and 102 of the National Credit Act by financing 'on the road' fees, as these fees are imposed by dealers and form part of the purchase price negotiated between the dealer and consumer. The financiers merely finance the principal debt, which includes the purchase price and any extras, and do not themselves charge or impose monetary liability for the disputed fees. The court found that the NCA does not prohibit the financing of such amounts at the consumer's request, and that the statutory provisions must be interpr…

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• National Credit Act
• Prohibited Charges
• Cost Of Credit
• Statutory Interpretation
• Consumer Protection
• Compliance Notices

National Credit Regulator v Lewis Stores (Pty) Ltd and Another (937/18)

National Credit Regulator v Lewis Stores (Pty) Ltd and Another (937/18) [2019] ZASCA 190; 2020 (2) SA 390 (SCA); [2020] 2 All SA 31 (SCA) (13 December 2019)

Court

Supreme Court of Appeal

Case number

937/18

Judges

Wallis, Nicholls, Dlodlo, Eksteen, Hughes

The Supreme Court of Appeal held that the errors in the documentation of extended warranties did not render the agreements void or unlawful, as the actual agreements between Lewis and its customers were honoured and provided the intended two-year cover beyond the supplier's warranty. The written document is evidence of the agreement, not a constitutive requirement, and extrinsic evidence may be considered where there is no dispute as to the substance of the agreement. Club fees were found to be unrelated to the credit agreement, optional, and not a cost of credit under the National Credit Act…

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• National Credit Act
• Extended Warranty Agreements
• Cost Of Credit
• Club Fees
• Statutory Appeals
• Leave To Appeal Procedure

National Credit Regulator v Mr Price Group Limited (NCT/81672/2017/140(1))

National Credit Regulator v Mr Price Group Limited (NCT/81672/2017/140(1)) [2018] ZANCT 140 (10 December 2018)

Court

National Consumer Tribunal

Case number

NCT/81672/2017/140(1)

Judges

P A Beck, FK Manamela, A Potwana

The Tribunal found that the club fee offered by Mr Price Group Limited to Milady's customers is an optional charge for a separate club membership service, not a mandatory cost of credit. Documentary evidence showed that consumers could elect whether or not to join the club, and the fee could be cancelled at any time without affecting the underlying credit agreement. The Act provides a closed list of permissible charges under section 101, but the club fee does not fall within these categories. However, because the fee is not required as a condition of the credit agreement and is not imposed on…

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• National Credit Act
• Prohibited Fees
• Cost Of Credit
• Club Membership Fees

Edcon Holdings Limited v National Consumer Tribunal and Another (A237/2017)

Edcon Holdings Limited v National Consumer Tribunal and Another (A237/2017) [2018] ZAGPPHC 372; 2018 (5) SA 609 (GP) (24 May 2018)

Court

North Gauteng High Court, Pretoria

Case number

A237/2017

Judges

J W Louw, Mdalana AJ

The High Court held that Edcon’s optional club fee was not a cost of credit under section 101 of the National Credit Act and upheld the appeal.

• National Credit Act
• Cost Of Credit
• Club Fees
• Declaratory Relief
• National-credit-act
• Cost-of-credit

National Credit Regulator v Edcon Holdings Limited (NCT/35378/2015/140(1))

National Credit Regulator v Edcon Holdings Limited (NCT/35378/2015/140(1)) [2017] ZANCT 58 (24 April 2017)

Court

National Consumer Tribunal

Case number

NCT/35378/2015/140(1)

Judges

J Simpson, FK Manamela, H Devraj

The Tribunal held that Edcon’s club fee could not be included in its credit agreements because the NCA permits only prescribed credit charges.

• National Credit Act
• Cost Of Credit
• Prohibited Fees
• Credit Agreement Compliance
• Consumer Protection
• National-credit-act