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Edcon v NCR Club Fees Ruling Pending Soon

The NCR took Edcon to the National Consumer Tribunal in 2017 over club fees which the Regulator said the credit provider was not allowed to charge.

The National Credit Act and Regulations set out what fees a credit provider can charge and a club fee is not one of them. Also, the Act does not allow for interest to be charged on club fees. This is why the National Credit Regulator took Edcon to the NCT over the matter.

The NCR won their case before the NCT. This meant that Edcon would have to repay around R4.7 Billion which would probably sink the company and shares. The NCT also ordered that an administrative fine of 10% of the companies annual turn over needed to be paid. The NCR was very happy about the victory which would see consumers being refunded for club fees since 2007.

‘This meant that Edcon would have to repay around R4.7 Billion’

Edcon decided to try to stay in business and took the matter on appeal to the North Gauteng High Court, where the matter was once again argued recently. Edcon argued that their credit agreement does not demand that consumers pay club fees (or that the NCT never found this to be the case). They say that if this is not the case then the ruling based on a breach of Section 101 does not exist and the ruling must be thrown out.

The ruling in the latest round of legal action surrounding this matter will soon be given and the future of the brand hangs in the balance.