Tag Archives: Appeal

Lewis Dodge NCR Club at NCT

Lewis Fend off NCR Action at Tribunal

NCR logoRiding high on their recent victory against Edcon (Edcon have to give billions of rand back to consumers if their appeal doesn’t work out) the National Credit Regulator began to roll out action against several other credit providers in regard to ‘Club Fees‘. In the Edcon matter the Tribunal found that these formed an illegal part of the credit agreements with consumers. Credit providers are only allowed to charge certain fees as set out in the National Credit Act and regulations.

Lewis logo medLewis, who have been the target of a lot of NCR attention over the last while, were on the list of club fee charging credit providers and the NCR took them to the National Consumer Tribunal (NCT) asking for fines and money to be returned.

In a surprise ruling, the NCT ruled that these Lewis club fees were different to the Edcon club fees and did not form part of any credit agreement.

 

‘the NCT ruled that these Lewis club fees were different to the Edcon club fees’

It is unclear if this ruling was by different members of the Tribunal and they simply see things differently or if the same members of the tribunal, how exactly the matters differ. [Debtfree will report more on that in this months magazine] Regardless the tribunal threw the application out.

‘the tribunal threw the application out.’

Another issue raised by the NCR in their application was with regard to warranty charges from Lewis that run concurrent with manufacturer’s warranties (so double cover that can only be claimed on once). The NCR are unhappy and are, like Edcon, taking the matter on appeal.