JOHANNESBURG, June 2 (ANA) – Clothing retailer Mr Price Group has said it will oppose the National Credit Regulator’s referral of the company to the Consumer Tribunal over the alleged breach of credit rules.
This comes after the National Credit Regulator (NCR) on Thursday referred Mr Price to the National Consumer Tribunal, alleging that the group was in breach of the National Credit Act as a result of charging consumers a club fee on credit agreements.
The credit regulator asked the Consumer Tribunal to impose a fine on Mr Price Group, asked the tribunal to conduct an audit of Mr Price’s loan book, and recommended refunds for the consumers affected.
But Mr Price contends the NCR’s charge, saying that the view held by the regulator only pertains to Miladys, one of the six trading divisions of the group, who offer the club product to their account customers.
“It is imperative to note that this product is a standalone product which entitles voluntary signed up members to a number of benefits including loyalty vouchers, savings with affinity partners and lifestyle magazines,” Mr Price said in a statement.
“Over the years, customers have been happy with the services and benefits associated with the club and as a Group we believe in the value offering which supports our proposition of great fashion and value.”
Mr Price said the NCR was basing its case upon the judgement handed down by the consumer tribunal against the Edcon Group, owners of retail store Edgars, which is being appealed.
Last month, the National Consumer Tribunal handed down judgement against Edcon that the monthly club fee the group charged to its credit customers was unlawful and in contravention of the National Credit Act. Edcon is appealing the judgement.
“The company is opposing the referral to the National Consumer Tribunal instituted by the NCR, as we do not agree with the view held by the NCR,” Mr Price said.
“We also obtained the advice of senior counsel, which was to the effect that the NCR’s position is untenable as it appears that the NCR has no rational basis for the relief sought against the company in these proceedings.”
– African News Agency (ANA)
