(2017) Edgars makes R400m/year by illegally charging credit customers a club fee

It is illegal for the Edcon Group – the owner of Edgars, Jet and CNA - to charge its credit customers club fees, the National Consumer Tribunal declared on Wednesday.

The National Credit Regulator has not yet announced on a possible fine or instruction to refund customers.

This ruling wipes out more than R400 million that Edcon “earns” every year in club fee income.

Ray White (in for Bruce Whitfield on The Money Show) interviewed Personal Finance Consultant Samke (Sam) Mhlongo-Ngwenya.

She gave advice on what is legal and illegal, and what to look out for when you sign a credit agreement.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

This is partly because consumers don’t read what they’re signing up for.

Samke (Sam) Mhlongo-Ngwenya

The National Credit Act says you can’t bundle products.

Samke (Sam) Mhlongo-Ngwenya

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Article brought to us by Old Mutual.


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