Pretoria - The Department of Trade and Industry (the dti) and the National Credit Regulator (NCR) will host a conference on the new National Credit Amendment Act next week to educate the public about over-indebtedness and help those drowning in debt.
The conference will be held under the theme Strategies to Reduce Over-Indebtedness in South Africa next week Thursday. It will touch on the main features of the amendments of the National Credit Amendment Act.
“Government is concerned about the high level of over-indebtedness which results from failure to do proper affordability tests on consumers, hidden costs of credit, as well as continued unfair lending practices by some credit providers,” the dti said on Thursday.
The National Credit Act was amended last year and signed into law by President Jacob Zuma. Regulations have been finalised and the National Credit Amendment Act will come into effect soon.
The amendments improve the debt counselling and review process, as well as provide for early rehabilitation of consumers who have been through debt counselling.
“The amendments strengthen affordability tests through new regulations, and will provide a standard and consistent approach to providing credit by credit providers.
“It also requires open and honest disclosure by consumers when applying for credit so that they don’t find themselves over-extended,” said dti spokesperson Sidwell Medupe.
The amendments also enhance coordination among regulators so that they can enforce the legislation more effectively as well as provide for automatic removal of adverse credit information once payment of the judgment is made.
Medupe said the amendments empower the National Consumer Tribunal (NCT) to hear breaches relating to reckless lending and impose appropriate penalties.
The conference will also talk to the rising concerns regarding the abuse of emolument attachment orders (EAO), which hold many consumers hostage as they find themselves trapped in debt situations that seem impossible to escape.
The conference will target stakeholders that are impacted by the amendments, such as banks, other credit providers, debt counsellors, credit bureaus, consumer groups and associations, individual consumers and lawyers in order to ensure a common understanding of this legislation.
Medupe said the conference marks the beginning of the implementation plan to raise awareness of the new amendments. The NCR will continue with education and awareness initiatives and strengthened enforcement strategies. - SAnews.gov.za
