CAPE TOWN – Shoprite Group had granted credit recklessly in 2013 and 2014 and has been ordered by the High Court to pay a fine and to appoint a debt counselor.
This was after the court in December upheld a National Credit Tribunal (NCT) ruling that the supermarket chain had granted credit recklessly. The High Court in Pretoria had dismissed Shoprite’s appeal, with costs.
Shoprite on Monday confirmed it had accepted the judgment by the National Credit Regulator and had processed the payment of the R1 million fine imposed on one of its subsidiaries, Shoprite Investments Limited, for extending credit to some of its customers too easily.
“This matter relates to credit agreements concluded in June 2013 and June 2014 with nine consumers from among thousands. In all these cases the credit extended was settled in full by the customers concerned,” the group said.
The NCT said in a statement that Shoprite had, in these cases, disregarded consumers’ pre-existing credit payment obligations, contrary to the provisions of the National Credit Act.