Parliament to start drawing up new law to provide debt relief next year
Parliament’s trade and industry committee will next year start drafting National Credit Act amendments to deal with consumer overindebtedness. Proposals adopted by the committee on Tuesday include criminalisation of contraventions of the act. Other amendments would include introducing simpler and stricter enforcement of the act; legal certainly on applying the in duplum rule which limits how much interest can build up; an effective debt counselling framework for low-income workers; and capped debt relief to promote a change in borrowing and spending habits. The report the committee adopted on Tuesday was based on proposals by a subcommittee which looked at submissions by banks, retailers, unions and debt counsellors on the need for debt-relief measures. Credit providers all said legislative debt-relief rules would be too prescriptive and they should be allowed to design customised solutions for clients. The committee reported that the proposals would bring relief to overindebted peo...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.