Fine-tuning of credit rules on the cards
National Credit Regulator submits changes to affordability assessment regulations
The National Credit Regulator (NCR) has submitted amendments to its affordability assessment regulations to tackle anomalies in the informal economy. Retailers are complaining that the anomalies are clipping millions off their sales. The affordability assessment regulations, which require credit providers to verify income through three payslips and bank statements before extending credit, were introduced in September 2015. The Foschini Group (TFG), a clothing retailer, said on Thursday that its R6.7bn retail debtors book did not experience any growth in the six months to September because of these regulations. "We estimate the negative impact on credit turnover to be in the region of R310m for this period," TFG said on releasing its results for the period.
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