South Africa Case Law

National Credit Regulator v Renene t/a Kwa-Whity and Another (NCT/321461/2024/140(1))

National Credit Regulator v Renene t/a Kwa-Whity and Another (NCT/321461/2024/140(1)) [2024] ZANCT 71 (5 December 2024)

Court

National Consumer Tribunal

Case number

NCT/321461/2024/140(1)

Judges

S Hockey, Z Ntuli, P Manzi-Ntshingila

The Tribunal found two Kwa-Whity operators conducted unregistered credit business, retained consumer cards and IDs, and imposed repayment, compliance and fines.

• National Credit Act
• Unlawful Credit Agreements
• Prohibited Conduct
• Administrative Fine
• Consumer Protection
• Registration Of Credit Providers

National Credit Regulator v Sell to us t/a Pawn My Car (Pty) Ltd and Another (NCT/326370/2024/140(1))

National Credit Regulator v Sell to us t/a Pawn My Car (Pty) Ltd and Another (NCT/326370/2024/140(1)) [2024] ZANCT 59 (4 October 2024)

Court

National Consumer Tribunal

Case number

NCT/326370/2024/140(1)

Judges

S Hockey, A Potwana, P Manzi-Ntshingila

The Tribunal found that the respondents, acting jointly, repeatedly contravened the National Credit Act and its regulations by entering into simulated secured loan agreements with consumers while unregistered as credit providers, failing to conduct required affordability assessments, overcharging interest, and repossessing vehicles without due process. The respondents disguised credit agreements as sale and lease transactions to circumvent the NCA, misled consumers regarding the nature of the agreements, and failed to provide prescribed documentation and disclosures. The Tribunal held that th…

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• National Credit Act
• Unlawful Credit Agreements
• Reckless Lending
• Affordability Assessment
• Administrative Fine
• Consumer Protection

National Credit Regulator v Loans at Smart Cash Bizana (Pty) Ltd (NCT/223348/2022/140(1))

National Credit Regulator v Loans at Smart Cash Bizana (Pty) Ltd (NCT/223348/2022/140(1)) [2022] ZANCT 26 (13 June 2022)

Court

National Consumer Tribunal

Case number

NCT/223348/2022/140(1)

Judges

N Sephoti, L Best, F Sibanda

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and its Regulations by extending credit after its registration had lapsed, charging excessive fees and credit life insurance premiums, failing to conduct proper affordability assessments, and inducing consumers to sign unlawful supplementary agreements. The Respondent's conduct was deemed prohibited, and the Tribunal held that the Respondent's actions caused financial harm to consumers, demonstrated a disregard for statutory obligations, and exploited vulnerable market segments. The Tribunal determined that…

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• National Credit Act
• Reckless Credit
• Credit Life Insurance
• Affordability Assessment
• Administrative Fine
• Unlawful Credit Agreements

National Credit Regulator v DEVCO Auto CC (NCT/213023/2021/140(1))

National Credit Regulator v DEVCO Auto CC (NCT/213023/2021/140(1)) [2022] ZANCT 23 (27 May 2022)

Court

National Consumer Tribunal

Case number

NCT/213023/2021/140(1)

Judges

P A Beck, J Simpson, M Peenze

The Tribunal found, on uncontested evidence, that the respondent repeatedly contravened the National Credit Act and its regulations by failing to provide credit agreements in the prescribed form, overcharging interest, imposing prohibited storage fees, including unlawful clauses that avoid statutory obligations, failing to pay annual renewal fees, entering into credit agreements while unregistered, and failing to submit annual financial returns. The respondent's conduct was aggravated by its failure to defend itself after being granted condonation and its non-appearance at the hearing. The Tr…

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• National Credit Act
• Prohibited Conduct
• Administrative Fine
• Credit Provider Registration
• Unlawful Credit Agreements
• Consumer Protection

National Credit Regulator v Dinga Finance CC (NCT/122560/2018/140(1))

National Credit Regulator v Dinga Finance CC (NCT/122560/2018/140(1)) [2020] ZANCT 1 (13 February 2020)

Court

National Consumer Tribunal

Case number

NCT/122560/2018/140(1)

Judges

A Potwana, J Simpson, H Alwar

The Tribunal found Dinga Finance CC repeatedly contravened the National Credit Act, declared prohibited conduct, imposed a R300,000 fine, and ordered consumer refunds.

• National Credit Act
• Reckless Lending
• Unlawful Credit Agreements
• Administrative Fine
• Prohibited Conduct
• Consumer Refund

National Credit Regulator v Patmat General Trading CC (NCT/71775/201657(1))

National Credit Regulator v Patmat General Trading CC (NCT/71775/201657(1)) [2017] ZANCT 59 (27 April 2017)

Court

National Consumer Tribunal

Case number

NCT/71775/2016/57(1)

Judges

J.M. Maseko, B. Dumisa, X. May

The Tribunal found that the Applicant had proven, on a default basis, that the Respondent repeatedly contravened several provisions of the National Credit Act, including failing to conduct affordability assessments, engaging in reckless lending, entering into unlawful credit agreements, failing to keep proper records, charging excessive interest, and employing prohibited collection practices. The Respondent did not defend itself or attend the hearing. The Tribunal held that these repeated contraventions constituted prohibited conduct under the Act and warranted cancellation of the Respondent'…

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• National Credit Act
• Reckless Lending
• Unlawful Credit Agreements
• Administrative Fine
• Prohibited Collection Practices

National Credit Regulator v Marang Financial Services (NCT/16157/2014/140(1))

National Credit Regulator v Marang Financial Services (NCT/16157/2014/140(1)) [2015] ZANCT 3 (24 February 2015)

Court

National Consumer Tribunal

Case number

NCT/16157/2014/140(1)

Judges

FK Manamela, HFN Sephoti, J Maseko

The Tribunal found Marang Financial Services in prohibited conduct under the National Credit Act, ordered consumer refunds, and imposed a R450,000 penalty.

• National Credit Act
• Reckless Lending
• Unlawful Credit Agreements
• Administrative Penalty
• Consumer Refund
• Record Keeping Requirements

National Credit Regulator v Sinako Kontant Lenings cc (NCT/8273/2013/57(1))

National Credit Regulator v Sinako Kontant Lenings cc (NCT/8273/2013/57(1)) [2013] ZANCT 58 (11 September 2013)

Court

National Consumer Tribunal

Case number

NCT/8273/2013/57(1)

Judges

F Manamela, L Best, J Maseko

The Tribunal found that the Respondent had admitted to repeated contraventions of the National Credit Act, its regulations, and its conditions of registration, specifically by requiring consumers to sign unlawful supplementary agreements, charging service fees and interest rates above prescribed limits, and failing to comply with General Condition A1. The Tribunal confirmed the settlement agreement as a consent order under section 138(1) and Rule 20, declared the Respondent's conduct prohibited, and cancelled its registration as a credit provider with immediate effect. The Tribunal held that…

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• National Credit Act
• Credit Provider Registration
• Prohibited Charges
• Unlawful Credit Agreements
• Consent Orders
• Consumer Protection

National Credit Regulator v Werlan Cash Loans (NCT/3867/2012/57(1))

National Credit Regulator v Werlan Cash Loans (NCT/3867/2012/57(1)) [2013] ZANCT 5 (13 February 2013)

Court

National Consumer Tribunal

Case number

NCT/3867/2012/57(1)

Judges

D Terblanche, X May, P Beck

The Tribunal found an unregistered credit provider had contravened the National Credit Act, declared the credit agreements unlawful, and imposed a R900,000 fine.

• Credit Provider Registration
• Unlawful Credit Agreements
• Administrative Fine
• Interest Rate Disclosure
• Compliance Notice
• Prohibited Conduct

Opperman v Boonzaaier and Others (24887/2010)

Opperman v Boonzaaier and Others (24887/2010) [2012] ZAWCHC 27 (17 April 2012)

Court

Western Cape High Court, Cape Town

Case number

24887/2010

Judge

Binns-Ward

Section 89(5)(c) of the National Credit Act 34 of 2005 mandates the forfeiture to the state of restitution claims by unregistered credit providers, even where such forfeiture results in unjust enrichment of the consumer. The court found that this provision constitutes an arbitrary deprivation of property in breach of section 25(1) of the Constitution. The forfeiture mechanism is not sufficiently justified by the regulatory objectives of the Act, especially where the lender is not a habitual credit provider and the transaction does not implicate vulnerable consumers. The common law consequence…

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• Arbitrary Deprivation Of Property
• National Credit Act
• Credit Provider Registration
• Unlawful Credit Agreements
• Constitutional Invalidity
• Sequestration Procedure