/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The National Council of Provinces (NCOP) today, 26 March passed the National Credit Amendment Bill, which seeks to provide uniformity in the application of affordability assessment regulation.

The Minister of Trade and Industry, Dr Rob Davies says that the Bill will benefit consumers in the following way:

• There will be compulsory regulations for affordability test which will curb reckless
   lending.

• Clampdown on the selling of expired (prescribed) debt as part of the loan books by   
  credit providers.

• It will be an offence to charge the interest rates and other costs of credit in the manner that exceeds the limit that is set in the law.

• Minister Davies will in consultation with the Minister of Finance issue regulations to
   curb the high cost of credit insurance.

Davies added that the Bill provides for an automatic removal of adverse listing.

“Which means consumers will not have to go to court to remove the adverse listing against their names. It is an obligation of the government to protect vulnerable consumers against unscrupulous practices,” he added.

The Minister said the Bill will through proper affordability test prevent consumers from falling into a debt cycle that they currently find themselves in.

According to the Bill all lenders irrespective of size will have to register with National Credit Regulator (NCR).  This will enable government to identify the illegal providers that keep holding consumers Identification Documents, Bank Cards, Sasa Cards, and charge high interest on credit.

As from next month the Government Gazette Notice No. 37386, Regulations for the Removal of Adverse Credit Information and Information Relating to Paid-up Judgments will come into effect.

This Notice includes regulations to remove adverse consumer credit information (such as adverse classifications of ‘handed over’ or ‘written off’) and information relating to paid-up judgments (such as default judgments where the consumer has settled the capital amount under the judgments).