Court decides in favour of Lewis regarding club fees, extended warranties

Cape Town - The National Credit Act (NCA) does not prevent credit providers from offering the services of a club to consumers, provided these services are not part of the “cost of credit”.

This was part of a Gauteng High Court judgment in an appeal by the National Credit Regulator (NCR) in a case against retailer Lewis Group [JSE:LEW]. The NCR initiated a case with the National Credit Tribunal (NCT) in 2016 regarding issues of club fees and extended warranties.

The court found that the club fees charged by Lewis do not form part of the cost of credit of any credit agreement between Lewis and its customers.

Lewis said in a note to shareholders issued on Wednesday that the NCA provides that the retailer may include the cost of an extended warranty as part of its fees and charges in its credit agreements with consumers and does not prescribe the terms and conditions of the extended warranty offered by Lewis to its customers.

The NCR's appeal was dismissed with costs.

By late morning trade on Wednesday the share price of Lewis was down 1.17% at R46.40.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

ZAR/USD
17.63
(-0.04)
ZAR/GBP
23.01
(-0.05)
ZAR/EUR
20.79
(-0.01)
ZAR/AUD
12.62
(-0.03)
ZAR/JPY
0.17
(-0.01)
Gold
2034.21
(+0.05)
Silver
28.28
(+0.09)
Platinum
961.50
(+0.38)
Brent Crude
44.55
(-1.53)
Palladium
2166.01
(+0.63)
All Share
56757.73
(-1.56)
Top 40
52435.65
(-1.72)
Financial 15
9897.96
(+0.10)
Industrial 25
74671.49
(-1.98)
Resource 10
58948.78
(-1.89)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 931 votes
It depends on how the funds are used.
74% - 6246 votes
No. We should have gotten the loan elsewhere.
15% - 1285 votes
Vote