Mr Price must refund club fees charged to customers who took loans for their purchases‚ the National Credit Regulator (NCR) said on Thursday.

The regulator said it was referring Mr Price to the National Consumer Tribunal‚ which in May ordered the owner of clothing chains Edgars and Jet‚ Edcon‚ to refund club fees included in its credit agreements.

The NCR is also asking the tribunal to impose an administrative fine on Mr Price for adding club fees to its interest bills‚ and to interdict the retail group from including club fees in future credit agreements.

The regulator called on consumers to read the small print carefully before accepting “buy now‚ pay later” deals from retailers.

“The National Credit Act allows consumers to be given a quotation that sets out the cost of credit before signing credit agreements. Consumers should request this quotation from their credit providers so that they can properly check the cost of credit that is being offered“‚ NCR senior legal adviser Nthupang Magolego said.