Summit Financial Partner director found guilty of contravening the NCA

Source: © Vitaliy Vodolazskyy 123rf

The National Consumer Tribunal (Tribunal) found Gardner guilty of contravening the National Credit Act 34 of 2005 and his conditions of registration as a debt counsellor.

This follows an investigation of complaints against Gardner by the National Credit Regulator (NCR) related to his activities as a debt counsellor.

The Tribunal found Gardner guilty of contraventions related, amongst others:

• Failing to:
  1. Make determinations whether consumers are over-indebted.
  2. Inform consumers of the consequences of applying for debt review.
  3. Update the records of consumers relating to debt review.
  4. Notify credit providers and credit bureaus that consumers have applied for debt review.
  5. Perform debt counselling functions personally.

• Over-charging of fees to consumers who applied for debt review; and receiving payments from consumers who applied for debt review at the commencement of the debt review process.
• Using misleading and deceptive advertisements offering debt repayment reductions of up to 50% and free debt counselling services when his services were not free.

The Tribunal imposed an administrative fine of R500,000 on Gardner. Furthermore, the tribunal ordered Gardner to appoint an independent auditor to audit his consumer files dating back three years in order to identify, amongst others, consumers who were overcharged fees by him.

The auditors’ report must be given to the NCR once completed, and Gardner will refund consumers identified by the auditors as having been overcharged