In addition, charging the fee was in contravention of the National Credit Act (NCA), the tribunal found.
An investigation by the National Credit Regulator (NCR) revealed that Edcon has 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," Jacqueline Peters, Manager: Investigations and Enforcement at the NCR said.
According to statement by the NCR, they were yet to approach Edcon to request an independent audit of their loan book in order to establish the number of consumers to be refunded, as well as the total amount to be refunded from 2007 to date.
Edcon's spokesperson promised to provide a response to the ruling as soon as he could.