The Consumer Tribunal has dismissed the National Credit Regulator’s (NCR’s) complaint against Lewis Stores relating to the retailer’s club fees and extended warranties. A Business Day report says the judgment has been met with dismay by a consumer group and the NCR is planning to launch an appeal.

The regulator had argued that the club fee was an additional ‘cost of credit’ to consumers, which was prohibited under the National Credit Act, and extended warranties either did not exist or ran concurrently with manufacturers’ warranties. In a majority judgment yesterday, the tribunal’s Tanya Woker, with Penelope Beck concurring, ruled that Lewis customers did not have to join the club when applying for credit. The application form relating to club membership was also separate.

Lewis welcomed the judgment. CEO Johan Enslin said it had launched a specialist compliance call centre in 2016 to increase oversight of its in-store sales and credit application processes, helping to limit potential misunderstandings. ‘The call centre agent is not incentivised to sell any products or services. They are there to ensure that the customer fully understands all critical elements of the credit deal and the optional services we supply.’

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