Edgars’ right to charge club fees under attack again
The National Credit Regulator has applied to the Supreme Court of Appeal to overturn a high court decision on Edcon’s club fees
Edgars’ right to collect more than R450m in club fees from those who buy on credit is under attack again as the National Credit Regulator (NCR) has applied to the Supreme Court of Appeal (SCA) to overturn a high court decision that Edcon’s club fees are lawful. And Nthupang Magolego, a senior legal adviser at the NCR, says the SCA has granted the regulator leave to appeal against a decision by the Gauteng High Court in favour of Lewis that its club fees are lawful. In August the Pretoria high court found that the National Consumer Tribunal (NCT) erred in finding that Edcon was not allowed to charge a club fee and that in charging this fee it had engaged in conduct prohibited by the National Credit Act. In upholding Edcon’s appeal against the NCT’s April 2017 judgment, judge Johan Louw said the club fee charged by Edcon was “clearly” not a cost of the credit extended to the consumer in terms of the credit facility. “Edcon’s credit agreements do not place any obligation on a consumer ...
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