The Consumer Tribunal has dismissed the National Credit Regulator’s (NCR’s) complaint against Lewis Stores relating to the retailer’s club fees and extended warranties. The judgment has been met with dismay by a consumer group and the NCR is planning to launch an appeal. The regulator had argued that the club fee was an additional “cost of credit” to consumers, which was prohibited under the National Credit Act, and extended warranties either did not exist or ran concurrently with manufacturers’ warranties. In a majority judgment on Monday, Tanya Woker, with Penelope Beck concurring, the tribunal ruled that Lewis customers did not have to join the club when applying for credit. The application form relating to club membership was also separate. “We are appealing against the judgment,” said NCR company secretary Lesiba Mashapa. “It is a split judgment. The Lewis club fee is reflected in statements of account to its credit customers. “The NCR does not support the conduct of credit ret...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.