Johannesburg - The directors and management of Lewis Group [JSE:LEW] are committed to co-operating fully with the National Consumer Tribunal to ensure the satisfactory resolution of a case brought against it by the National Credit Regulator (NCR).
Lewis Group advised shareholders on Thursday that the NCR has referred two of its operating subsidiaries, namely Lewis Stores and Monarch Insurance Company, to the Tribunal for alleged breach of the National Credit Act (NCA).
Lewis said the referral relates to three cases of the sale of retrenchment cover to pensioners and self-employed consumers, or the sale of disability cover to pensioners under credit life insurance contracts.
The regulator is seeking refunds for the consumers involved and wants the consumer tribunal to conduct an audit of Lewis and its insurance partner Monarch Insurance.
"The NCR has requested the Tribunal to order refunds to the customers impacted by the sale of these insurance products, to undertake an audit and to impose an administrative fine of R10m on the company," Lewis said.
The group undertook to keep investors updated on developments relating to the Tribunal’s investigations.
Fin24 reported on Wednesday that a mystery shopping experience by Summit Financial Wellbeing, a company which fights for consumer rights and lobbies for change in the financial services industry, has seemingly uncovered breaches of the NCA by Lewis Group regarding certain delivery/handling fees and extended warranties.