The National Credit Regulator says it has referred Edcon Limited to the National Consumer Tribunal.
This followed for charging consumers a club fee on credit agreements in contravention of the National Credit Act.
Jacqueline Boucher, the NCR's acting manager for Investigations and Enforcement, says the Act allows consumers to be given a quotation which sets out the cost of credit before signing credit agreements.
She says consumers should request this quotation from credit providers so that they can properly check the cost of credit that's being offered.
Boucher says the National Credit Regulator wants Edcon to refund the affected consumers the club fees charged, interdict Edcon from continuing with their unlawful conduct and also impose an appropriate administrative fine.
She says the National Credit Regulator will continue to conduct industry-wide investigations on the cost of credit to root out illegal charges and fees that consumers are charged.
Herewith comment from Edcon:
“Edcon acknowledges that on 05 November 2015, the company received the Notice of Motion from the National Credit Regulator (“Regulator”). Edcon is also aware of the media release issued by the Regulator today which alleges that the company has breached certain provisions of the National Credit Act by charging consumers a club fee on credit agreements. Our legal team is studying the Notice of Motion and the supplementary documents to better understand the Regulator’s position. Edcon will issue a statement at the appropriate time.”
About Edcon’s Club membership:
Club is an optional product, which is in no way a condition of any credit agreement, that prospective and existing credit customers can sign up for, that entitles customers to an array of popular benefits ranging from discounted movie tickets, dinner, wine, travel as well as offering peace of mind for their families with discounted funeral cover, emergency assistance, legal assistance and educational benefits at an affordable price.
