The willingness of banks to find ways to relieve the financial burden of indebted clients is evident, but the jury is still out as to whether this needs to be backed up by enforcement measures. These comments by National Credit Regulator CEO Nomsa Motshegare came after presentations by banks on their approach to debt relief to Parliament’s trade and industry portfolio committee. The committee is investigating whether debt relief is necessary and if provision for it should be embodied in an act. A subcommittee has been set up to look into the matter and portfolio committee chairwoman Joan Fubbs is hopeful it will finalise its report before the end of the parliamentary session in December. Nedbank, Standard Bank, Absa, First Rand, Capitec and African Bank made submissions to the committee, largely supporting the Banking Association SA’s view that banks need flexibility to deal with individuals on a case-by-case basis. A prescriptive law or regulation would remove this. Motshegare said...
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