Mr Price Group disagrees with South Africa’s credit regulator

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Mr Price Group said it disagrees with South Africa’s National Credit Regulator over allegations that the group is in breach of the National Credit Act, NCA as a result of including a club fee on credit agreements.

They contend the charging of this fee is not permitted by the NCA. The Group responds as follows:

The view held by the NCR only pertains to Miladys (one of the six trading divisions of the Group) who offer the club product to their account
customers. It is imperative to note that this product is a standalone product which entitles voluntary signed up members to a number of benefits
including loyalty vouchers, savings with affinity partners and lifestyle magazines. Over the years, customers have been happy with the services and benefits associated with the club and as a Group we believe in the value offering which supports our proposition of great fashion and value.

The Company is opposing the referral to the National Consumer Tribunal (NCT) instituted by the NCR, as we do not agree with the view held by the NCR. We also obtained the advice of Senior Counsel, which was to the effect that the NCR’s position is untenable as it appears that the NCR has no rational basis for the relief sought against the Company in these proceedings.

Mr Price Group said that the underlying judgement handed down by the NCT against Edcon Limited, upon which the NCR relies in holding this view, is being appealed.

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