Credit registration aims to muzzle loan sharks
MOVES are afoot to get small and informal credit providers registered, thereby weeding out unscrupulous operators and offering consumers more protection.The initiative to tighten laws around the extension of credit follows a decision by the Cabinet that the trade and industry and justice departments and the Treasury to tackle the overindebtedness of households.Siphamandla Kumkani, the Department of Trade and Industry’s director for credit law and policy, said yesterday the draft regulations relating to the registration and registration fees for credit providers had been approved by minister Rob Davies and would be gazetted for public comment shortly.He said at a briefing to Parliament’s trade and industry portfolio committee that registration would "catch those unscrupulous loan sharks below the National Credit Regulator’s (NCR’s) radar who continue to charge exorbitant interest on loans, hold credit cards and social grant cards as security, and continue to drive the poor into a dee...
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