Thursday, 13 September 2018
Cape Town: The National Assembly on Wednesday adopted the long-awaited National Credit Amendment Bill, which aims to address and prevent over-indebtedness of consumers.
“The bill provides relief for over-indebted consumers earning less than R7 500 with unsecured debt of not more than R50 000. It will directly address the plight of the poor and low-income workers who are over-indebted. It also intends to encourage and enforce responsible lending and borrowing,” said acting Trade and Industry Minister Lindiwe Zulu.
The bill was debated and adopted in the National Assembly after it was adopted by the Portfolio Committee on Trade and Industry last week Friday.
The bill will improve the collection of bad debt amongst over-indebted low income consumers by credit providers. In South Africa, approximately R879 million of bad debt is collected by credit providers through debt counselling on a monthly basis.
Approximately 38% of 25 million credit active consumers have impaired credit records.
During the second reading debate on the bill, Zulu clarified that the bill is an amendment to the National Credit Act of 2005, which came into effect in 2007 with the aim to address and prevent over-indebtedness of consumers and ensure an accessible, consistent, responsible and equitable credit market.
Zulu said the bill introduces a new effective and