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NATIONAL CREDIT REGULATOR

NATIONAL CREDIT REGULATOR. Moving Forward. Lesiba Mashapa 11 March 2014. PURPOSE OF THE ACT. Promote access to credit under sustainable market conditions Promote responsible lending & borrowing (reckless lending & over-indebtedness)

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NATIONAL CREDIT REGULATOR

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  1. NATIONAL CREDIT REGULATOR Moving Forward Lesiba Mashapa 11 March 2014

  2. PURPOSE OF THE ACT . • Promote access to credit under sustainable market conditions • Promote responsible lending & borrowing (reckless lending & over-indebtedness) • Fairness & balancing the rights & responsibilities of consumers & credit providers • Addressing & correcting imbalances in negotiations power between credit providers & consumers • Improve consumer credit information & regulation of credit bureaux.

  3. QUESTIONS • Has the NCA changed the manner in which the credit market functions? • Has it achieved its primary purpose? • Has it addressed all market conduct practices that are unsustainable and destabilising? • … noting that the NCA has been in existence for 7 years.

  4. THE STRUGGLE FOR A BETTER CREDIT MARKET IN SA CONTINUES • Review of policy framework on which NCA founded conducted • Review concluded that the policy framework is sound & relevant • However, intended outcomes always not materialised as anticipated • Identified need to enhance certain policies underlying NCA & improve certain provisions of the NCA

  5. IMPROVEMENT OF THE NCA • Closing gaps to facilitate the smooth functioning of the debt counselling process • Recognition of the Payment Distribution Agents • Enhance early rehabilitation of consumers in debt review & listed at the credit bureaus • Introduce standardised measures to enable credit providers to assess affordability • Additional regulation of the cost of credit • Recognition of Alternative Dispute Resolution Agents.

  6. ASSISTANCE TO CONSUMERS LISTED AT THE CREDIT BUREAUS • Once-off removal of adverse consumer credit information • This measure is intended to remove barriers to employment opportunities, rental accommodation & access to credit • Review of data retention periods to allow the removal of paid-up judgments & adverse information listings on a continuous basis • This measure eliminates the cost of repairing credit records & would provide an incentive to consumers to pay their debts.

  7. Thank You www.ncr.org.za

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