Credit watchdog deciding how to respond to retailers' suit over tighter rules
THE National Credit Regulator (NCR) is finalising its response to a lawsuit brought by three retail groups in June challenging its new affordability assessment regulations, which retailers claim caused millions of rand in lost sales.Truworths said in its report for the year to June, published in September, that it and two other retailers had instituted legal action against the regulator and the Department of Trade and Industry, to review the affordability assessments. The two other retailers are TFG and Mr Price. "Their main issue is income verification, where the regulations require credit providers to obtain payslips and bank statements to validate the consumers’ income," said NCR company secretary Lesiba Mashapa.Truworths CEO Michael Mark said managing the effect of the regulations was the group’s biggest challenge this financial year. The regulations, which require anyone providing credit to obtain proof of income in the form of the three most recent months’ payslips or bank sta...
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