The Loan Company (Pty) Ltd v The National Credit Regulator and Another

The appellant operated a pawn-broking business providing short-term loans secured by movable property. Following complaints, the National Credit Regulator (NCR) investigated and alleged that the appellant concluded credit agreements and advertised the availability of credit while not registered as a credit provider under the National Credit Act 34 of 2005, and that it charged interest in excess of prescribed limits. The NCR referred the matter to the National Consumer Tribunal, which declared the conduct unlawful, voided sample credit agreements, ordered refunds and restitution to consumers, and imposed an administrative fine of R250 000. Appeals to the High Court and subsequently to the Supreme Court of Appeal followed.

The appeal was dismissed with costs, including the costs of two counsel. The orders of the National Consumer Tribunal, as confirmed by the High Court, remained in force.

The judgment clarifies the strict obligations on credit providers to be properly registered before offering, advertising, or concluding credit agreements. It affirms the consumer-protection purpose of the National Credit Act, confirms the enforcement powers of the National Consumer Tribunal, and limits reliance on transitional or exemption provisions such as sections 42 and 89. The case reinforces regulatory oversight in the credit market.