LEWIS GROUP LIMITED - NCR matter update

Release Date: 02/08/2018 13:22
Code(s): LEW
 
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NCR matter update

Lewis Group Limited

Registration number 2004/009817/06

JSE share code: LEW

ISIN: ZAE00058236



With regard to the matter between the National Credit Regulator and Lewis Stores (Pty) Ltd
in relation to the issues of Club fees and Extended warranties.



Shareholders are referred to the announcements released on SENS of 5 June 2017 and the
30th of April 2018 regarding the favourable judgment for Lewis by the National Consumer
Tribunal (NCT) in the matter between the National Credit Regulator ("NCR") and Lewis
Stores (Pty) Ltd ("Lewis"), which the NCR initiated in 2016 in relation to the issues of club
fees and extended warranties. In a majority judgment, the NCT found that:



   •   The National Credit Act ("Act") does not prevent credit providers from offering the
       services of a club to consumers, provided these services are not part of the "cost of
       credit". It was found that the club fees charged by Lewis do not form part of the cost
       of credit of any credit agreement between Lewis and its customers;

   •   The Act provides that Lewis may include the cost of an extended warranty as part of
       its fees and charges in its credit agreements with consumers and does not prescribe
       the terms and conditions of the extended warranty offered by Lewis to its customers.


On 28 June 2017, the NCR filed a notice of appeal to the ruling in the High Court of South
Africa (Gauteng Division) and on 30 April 2018, the High Court handed down judgment in
Lewis' favour with regard to the appeal by the NCR. The matter was dismissed with costs
against the NCR.


Following the dismissal, the NCR petitioned the Supreme Court of Appeal (“SCA”) for leave
to appeal the matter. Special leave to appeal has been granted by the SCA. The NCR now
has one month within which to lodge a notice of appeal.



A copy of the court order can be requested from Ms Diane Rafferty by email on
diane.rafferty@lewisgroup.co.za.



Cape Town

02 August 2018

Sponsor: UBS South Africa Proprietary Limited

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