National Credit Regulator v Getbucks (Pty) Ltd and Another

Regulation 44 under the National Credit Act 34 of 2005 prescribes a maximum monthly service fee of R50 that credit providers may charge consumers. The National Credit Regulator (NCR) alleged that Getbucks (Pty) Ltd overcharged service fees in contravention of Regulation 44 and referred Getbucks to the National Credit Tribunal for deregistration. Getbucks approached the Gauteng Division of the High Court seeking a declaration that Regulation 44 was ultra vires and invalid, and that the NCR could not rely on it in deregistration proceedings. The High Court found that Regulation 44 had been invalidly promulgated because the Minister of Trade and Industry failed to comply with procedural requirements, and barred the NCR from enforcing it against Getbucks. The NCR appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs, and the High Court order barring the NCR from enforcing Regulation 44 against Getbucks was upheld.

The case affirms the strict application of the principle of legality to the promulgation of regulations under the National Credit Act and clarifies the mandatory nature of statutory public participation requirements. It also reinforces the availability of collateral or reactive challenges to invalid subordinate legislation when relied upon for coercive enforcement, even long after promulgation. The judgment has important implications for regulatory compliance and administrative law in South Africa.