CAS COOVADIA: Unsustainable National Credit Amendment Act rushed through
The Banking Association SA is concerned that certain sections of the proposed new legislation concerning lending and borrowing are poorly considered and badly crafted
The Banking Association SA (Basa) interacted substantially with the trade and industry portfolio committee on the National Credit Amendment Act, which was gazetted this week. However, we are concerned that the version of the act signed into law by President Cyril Ramaphosa on August 13 still contains critical sections that are poorly considered and badly crafted, and in any event do not achieve the intended objective of helping overindebted consumers.
The legislation has its genesis in the trade and industry portfolio committee. This is unusual and shows the challenges that arise when draft legislation has not first been considered carefully by the executive and bureaucrats who have expertise in these areas.