Proposed legislation to help over-indebted consumers might prove to be a double-edged sword, discouraging consumers from managing their credit responsibly, the Banking Association South Africa (Basa) warns.
The organisation was referring to the draft National Credit Amendment Bill, which was published by Parliaments portfolio committee on trade and industry last year. Public hearings on the bill are due to be held over the next two weeks.
The draft bill permits a person who earns less than R7500 a month and who owes less than R50000 in unsecured debt relating to credit agreements to apply to the National Credit Regulator (NCR) for intervention.
If the NCR is of the view that the applicant requires assistance, a single member of the …
Read the full article at: https://www.iol.co.za/personal-finance/debt-relief-measures-will-reward-irresponsible-consumers-12997992
