The club fee charged by Edcon to its credit customers has been found to be unlawful and in contravention of the National Credit Act (NCA), notes a TimesLIVE report. The National Consumer Tribunal’s judgment followed an investigation by the National Credit Regulator (NCR)‚ which found Edcon charged consumers a club fee on credit agreements. ‘It is now settled that the charging of a club fee on credit agreements is not permitted by the NCA‚’ said Jacqueline Peters‚ manager of investigations and enforcement at the NCR. The NCA does not allow for any other fees‚ charges or costs to be included in a credit agreement or credit agreement documents‚ irrespective of the nature of the charge‚ fee or cost. ‘This judgment provides clarity to the retailers that they should observe the closed list of fees and charges provided for in the NCA,’ Peters said. The report adds the regulator will request an independent audit of Edcon’s loan book to establish how many consumers must be refunded and the total amount to be refunded from 2007. A Business Day report suggests the ruling could wipe out much of Edcon’s R400m-a-year club-fee income. It says that although a financial sanction, such as an administrative fine and refund of fees, is still to be announced, the ruling has grim implications, given Edcon’s financial situation. One analyst, who has tracked the regulator and the tribunal, reportedly said the good news for Edcon and other retailers was that final decisions were drawn-out affairs and inevitably diluted by legal challenges. He said there was little prospect of Edcon having to repay 10 years’ fees.