CONSUMER TRIBUNAL
Credit watchdog appeals against Finbond premiums ruling
The National Credit Regulator complained Finbond Mutual Bank was overcharging for credit life insurance, but the tribunal says it could not make a finding
The national credit regulator (NCR) will approach the high court to contest the Consumer Tribunal’s judgment on Finbond Mutual Bank, which it has accused of overcharging customers for credit life insurance. Finbond was also accused of failing to disclose commissions paid to it by third-party insurer Guardrisk, which it admitted to during the hearings and has since remedied. The tribunal dismissed the credit watchdog’s case late in August, saying it did not present evidence that would allow the tribunal to rule that the bank was forcing customers to buy insurance at unreasonable cost. “The National Credit Act requires the tribunal to conduct its hearings in an inquisitorial manner,” said NCR company secretary Lesiba Mashapa. “If the tribunal needed any specific information, they could have requested such information from the NCR during the hearing under their inquisitorial powers or rules. “The NCR is appealing against the judgment to the high court. Our ideal position would be for t...
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