The National Credit Regulator (NCR) has taken to task retail giant Mr Price Group Limited for alleged violation of the National Credit Act.
This after referring the company to the National Consumer Tribunal following an investigation which revealed that the company charged consumers club fees on credit agreements in contravention of the Act.
In a statement, NCR’s Nthupang Magolego said the Act required consumers to be given a quotation by credit providers which sets out the cost of credit before signing credit agreements and that they should request the quotation from their credit providers so that they can properly check the cost of credit being offered.
Their submission asks the tribunal to:
- Interdict the company from charging consumers a club fee on credit agreements
- Order the company to conduct an independent audit of its loan book to determine the number of consumers to be refunded
- Order the company to refund consumers who have been charged the club fees
- Impose an appropriate administrative fine on the company.
Details: Rishana Singh 011 554 2858
Read: Know your consumer rights
