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LEW 201609150028A
NCT Judgement
Lewis Group Limited
Incorporated in the Republic of South Africa
Registration number: 2004/009817/06
JSE share code: LEW
ISIN: ZAE000058236
("the group")
NCT JUDGEMENT
Shareholders are advised that the National Consumer Tribunal (“NCT”)
delivered its judgment and reasons in the following matter: THE NATIONAL
CREDIT REGULATOR (“NCR”) / LEWIS STORES (PTY) LTD (“Lewis”) and MONARCH
INSURANCE COMPANY LTD (“Monarch”) – CASE NO.: NCT/27651/2015/140 (P) NCA
(“the judgment”) on 14 September 2016.
In terms of the judgment, the NCT:
1. dismissed the NCR’s application against Monarch;
2. found that the investigation and referral of the complaints against
Lewis by the NCR was valid;
3. found that the offering of loss of employment insurance by Lewis to
pensioners or self-employed consumers was unreasonable and therefore
constituted prohibited conduct under the National Credit Act (“NCA”);
4. found that the offering of disability insurance by Lewis to pensioners
would be unreasonable, unless further enquiry and clarification was
obtained and recorded, which makes it clear that such consumers
requested such insurance cover;
5. found that the offering of disability insurance by Lewis to self-
employed persons was not unreasonable;
6. found that there is no clear basis on which the unreasonableness of
the disability and loss of employment insurance ties to a specific
provision in Lewis’s credit agreements which has the effect of
deceiving consumers;
7. found that the NCR did not submit any evidence of the way in which
consumers were allegedly deceived by Lewis;
8. found that it is unable to make a finding that Lewis uses additional
or supplementary agreements to circumvent the purposes of the NCA; and
9. ordered that an independent audit be done of all credit agreements
entered into by Lewis since 2007, for purposes of determining whether
any pensioners or self-employed consumers were sold loss of
employment insurance and whether any pensioners were sold disability
insurance. If so, Lewis is to reimburse such consumers with any
premiums and any interest charged on their accounts as a result of
such insurance premiums. Consumers who no longer have open accounts
with Lewis are to be traced and reimbursed. The independent audit to
be completed at Lewis’ cost within 120 days and the audit report is to
be furnished to the NCR within 150 days. Thereafter the NCT will set
the matter down for hearing on the quantum of the administrative
penalty to be imposed. In this regard, we remind shareholders that
Lewis has already carried out its own investigation in regard to loss
of employment insurance sold to pensioners and self-employed
consumers, and has to date reimbursed the premiums paid together with
interest thereon, to more than 90% of such consumers.
Lewis will be considering the judgment with its legal advisors for purposes
of determining the next steps to be taken by it in this matter, and
shareholders will be kept advised on developments.
Cape Town
15 September 2016
Sponsor: UBS South Africa (Pty) Ltd
Date: 15/09/2016 12:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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