October said in a briefing to the parliamentary committee on Tuesday that all jurisdictions accepted that debt could be extinguished (for example in liquidations and business rescue) and that this was not expropriation. What was key was the process followed and that the other side had the opportunity to be heard.
Debt could not be written off in a generic way using a “sledgehammer” approach without dealing with the individual overindebted applicants and the individual credit providers.
It could not be done on a group basis. “We have to strengthen the bill to allow for the National Consumer Tribunal to play a bigger role and allow credit providers to have some say in the process.”