Tribunal wants audit of all Lewis credit deals
IN ITS first substantial ruling against a listed company, the National Consumer Tribunal has ordered Lewis Stores to oversee an independent audit of all the credit agreements it has entered into since 2007.Industry sources say the number of agreements could top a staggering 1-million. On Wednesday, the tribunal ruled that Lewis had contravened the National Credit Act.By the close of trade on Wednesday, the Lewis share price had not reacted to the news, but the ruling’s wide-ranging implications are expected to have a damping effect on the price in coming weeks.Lewis Group management said on Wednesday evening that it was considering the findings and would respond formally on Thursday.The unexpectedly tough ruling from the tribunal will not only damage Lewis’s reputation but is likely to tie it up in a potentially unlimited independent audit of the group’s entire base of credit customers.The National Credit Regulator (NCR) considered this "a great victory", said media relations office...
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