Club charges trip up Mr Price
The National Credit Regulator also wants the National Consumer Tribunal to impose an administrative fine on Mr Price for adding club fees to its interest bills
The National Credit Regulator (NCR) has accused Mr Price Group of contravening sections of the National Credit Act, an allegation the retailer denies. The matter, which has been referred to the tribunal to mete out appropriate punishment, could cost the fashion group up to 10% of its annual turnover. The NCR said on Thursday that Mr Price Group had been charging club fees to its credit customers. The charging of a club fee on a credit agreement is not permitted by the National Credit Act. “The regulator has already referred several retailers to the tribunal for this conduct,” said NCR senior legal adviser Nthupang Magolego. “Investigations into the cost of credit are being conducted across the credit industry.” Edcon is facing the tribunal for an identical breach. Included in the relief sought by the NCR are an order to force Mr Price Group to refund the affected consumers, an interdict to stop the retailer from charging those fees and the imposition of an administrative fine. Mr Pr...
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