Credit regulator unhappy with judgment over Lewis Stores’ fees
Lewis charges fees for its extended warranty and club membership in a separate ‘statement of account’, which lets them off the hook
"We’re extremely disappointed‚ and we’re going to fight this with all we have." This was National Credit Regulator (NCR) senior legal advisor Nthupang Magolego’s response to the news that the National Consumer Tribunal had dismissed the regulator’s case against Lewis Stores for offering its customers extended warranties and club membership‚ for extra fees‚ pushing up the cost of buying furniture on credit. Two of the three Tribunal members were of the view that because the fees for the extended warranty — overlapping the furniture’s manufacturer warranty — and club membership are reflected by Lewis in a separate "statement of account" rather than being included in the credit agreement itself — as is the case with Edcon’s club fee — it is not a contravention of the National Credit Act. The NCR is appealing the Tribunal’s judgment. "Lewis was smart enough not to put those fees into the credit agreement itself‚ but rather into a separate document they call a statement of account‚ but t...
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