Last week was a bad week for the country’s credit regulators. First up was the constitutional court’s ruling on emolument attachment orders (EAOs), which highlighted flaws in the legislation that resulted in low-income consumers being subjected to abusive debt collection practices. Then came the national consumer tribunal’s ruling on Lewis Stores’ dodgy (turns out illegal) selling of unemployment insurance, which set out clearly the restrictions on the sale of unemployment and disability insurance and found Lewis had contravened the National Credit Act (NCA) on both fronts.The rulings will change unsecured lending practices, whether in the form of cash or furniture, forever. This is not least because a judge of the high court has ordered government to ensure consumers know their rights.Inevitably, given human nature and the drive to make profit, it will not wipe out abuse, but it will make things more difficult for abusers. And anyone thinking they might be able to devise new forms ...
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