National Credit Regulator v Dacqup Finances CC trading as ABC Financial Services – Pinetown and Another

The National Credit Regulator (NCR), acting in terms of the National Credit Act 34 of 2005 (NCA), initiated a complaint and investigation into Dacqup Finances CC, a registered micro‑lender, after an NCR inspector observed signage advertising ‘instant loans’ and was informed that interest of 30% per month was charged. The investigation found that Dacqup had failed to conduct proper affordability assessments, overcharged interest and fees, and engaged in reckless credit practices. The National Consumer Tribunal found repeated prohibited conduct, imposed an administrative fine of R300 000, and ordered Dacqup to appoint an independent auditor to assess past credit agreements and reimburse overcharged consumers. Dacqup successfully appealed to the Gauteng High Court on a point in limine, which held that the NCR lacked a reasonable suspicion to initiate the complaint. The NCR appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The High Court’s order was set aside and substituted with an order dismissing Dacqup’s appeal with costs, thereby reinstating the National Consumer Tribunal’s decision.

The judgment clarifies the low threshold required for the NCR to initiate complaints under the NCA and affirms the wide investigative and remedial powers of the National Consumer Tribunal. It reinforces the protective purpose of the NCA as social legislation and confirms that regulated entities in the credit industry have a reduced expectation of privacy.