Credit providers will still be urged to ask for pay slips or bank statements of formally employed consumers to finalise affordability assessments, according to draft guidelines published by the National Credit Regulator (NCR) in the Government Gazette on Friday for public comment. The guidelines for determining consumers’ gross incomes and discretionary incomes are in response to a court finding in March that consumers did not have to produce proof of income to access credit. The High Court in Johannesburg ruled against the trade and industry minister and the NCR in removing income-verification requirements entirely from National Credit Act regulations, even for consumers who can produce pay slips and bank statements. Regulation 23A (4) was set aside while the rest of the act was left unchanged. The case was brought by JSE-listed retailers Truworths, TFG and Mr Price, which said the regulation was unreasonable and unfairly discriminated against people working in the informal sectors...
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