Credit watchdog refers Foschini to consumer tribunal over club fees
The National Credit Regulator has referred clothing retailer Foschini to the National Consumer Tribunal for charging consumers a club fee on credit agreements, which is not permitted by the National Credit Act.
"The National Credit Act allows consumers to be given a quotation which sets out the cost of credit before signing credit agreements. Consumers should request this quotation from their credit providers so they can properly check the cost of credit that is being offered," said NCR manager for investigations and enforcement Jacqueline Peters.
The NCR is asking the tribunal to order Foschini to refund the affected consumers the club fees they were charged; to conduct an independent audit of its loan book to determine the number of consumers to be refunded; to interdict Foschini from charging consumers a club fee on credit agreements; and to impose an appropriate administrative fine on Foschini.
"The NCR will continue to conduct industry-wide investigations on the cost of credit to root out illegal charges and fees that consumers are charged," Peters said.