The Banking Association SA has voiced frank criticism of a bill proposing debt-relief measures, that is to be debated in Parliament next week, saying it could accelerate irresponsible borrowing and increase the cost of credit for all consumers. The association was not in favour of a "legislated change" in debt obligations for low-income consumers, as had been proposed by Parliament’s trade and industry portfolio committee in the Draft National Credit Amendment Bill, MD Cas Coovadia said on Thursday. The association would make its submissions to Parliament during hearings on the matter. Nearly 10-million consumers have impaired credit records, or about 39% of those who are credit active, according to the national credit regulator (NCR). Consumers have impaired records when they fall behind on their debt repayments by three or more months, or if they have an adverse listing, judgment or administration order. In an attempt to tackle SA’s overindebtedness problem, the regulator has intr...
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