Credit Regulator reports Edcon to Consumer Tribunal

Edcon has been referred to the National Consumer Tribunal (NCT) for charging “consumers a club fee on credit agreements”.

The National Credit Regulator (NCR) announced on Friday that the practice “is not permitted by the National Credit Act (NCA)”.

“The NCA allows consumers to be given a quotation which sets out the cost of credit before signing credit agreements‚” the NCR’s acting manager of investigations and enforcement‚ Jacqueline Boucher‚ said.

“Consumers should request this quotation from their credit providers so that they can properly check the cost of credit that is being offered.”

The NCR wants NCT to order Edcon to:

- Refund affected consumers the club fees charged;

- Interdict Edcon from continuing with their unlawful conduct; and

- Impose an appropriate administrative fine.

“The NCR will continue to conduct industry-wide investigations on the cost of credit to root out illegal charges and fees that consumers are charged‚” a statement said.