National Consumer Tribunal Annual Report 2011/12 National Consumer Tribunal 2011-12 | Page 13

The Tribunal continues to be served by a core of dedicated and skilled
Tribunal members who provide their skills and expertise in the adjudication
of cases. During the course of the year, one member resigned. The terms
of office of all members are due to expire in September 2011, as a result
of which the dti has called for the nominations of members for the next
term of office.
Of ongoing concern is the fact that Tribunal members’ remuneration has
not been adjusted since the Tribunal’s inception in 2006. The Tribunal
is also currently served by eleven members, including the Chairperson.
The minimum number required in order to be legally constituted in terms
of the NCA is ten members and a Chairperson, and additional members
therefore need to be urgently appointed. Both these matters are causes
of concern and pose significant risk to the organisation, and we are in
communication with the dti around these issues.
As we move forward into the new financial year, the Tribunal stands
ready to play its role in one of the most exciting developments in recent
years: that of the implementation of the Consumer Protection Act 68 of
2008 (CPA) on 1 April 2011. The CPA unquestionably has far-reaching
implications for consumer and business alike. It will also further diversify
the Tribunal’s service offering by significantly expanding the range of
industries over which the Tribunal has oversight. To date, the Tribunal’s
oversight was confined to the credit industry in terms of the NCA. With
the implementation of the CPA, it will have adjudicative oversight of all
industries with the exception of long- and short-term insurance in certain
respects. In preparation, the Tribunal was consulted extensively on the
development of the regulations and rules pertaining to the adjudication
of matters in terms of the CPA, and submitted its comments on the draft
Rules of the CPA to the dti. We anticipate that the first cases arising from
the CPA will be referred to the Tribunal towards the end of 2011, and
look forward to receiving them. We are confident of being able to meet
whatever challenges may arise as a result.
A large component of the Tribunal contributing to the dti’s growth plan
is its adjudication on prohibited conduct in terms of the NCA. We are still
seeing a low number of referrals of prohibited conduct in terms of the
NCA, and we are putting strategies in place with the relevant stakeholders
to address this.
During the past year, the Tribunal has made its mark with precedent-
setting judgments and interpreting various sections of the Act. The Tribunal
accordingly added value to the regulation of the credit environment in
South Africa, ensuring that consumers are protected against unscrupulous
credit practices. For example, in the Motitsoe matter, the Tribunal set
precedent by refusing to confirm a debt re-arrangement in circumstances
in which the interest rate agreed between the parties exceeded the
maximum interest rate allowed in terms of the NCA. The Tribunal refused
the order and referred the matter to the National Credit Regulator to
investigate possible prohibited conduct on the part of the credit provider.
The impact of this decision, as well as other decisions of the Tribunal, is
discussed in more detail in the adjudication section of this report.
Annual Report 2011
national consumer tribunal | page 11