The Plenary of National Council of Provinces approved the national Credit Amendment Bill on 26 March 2014 – all nine provinces voted in favour of the Bill.
The Bill has been sent to the President to be signed into law and as the Bill is marked as “Consumer Protection”, it will fast track the enactment thereof.
Here some important changes provided for:
The Board of the National Credit Regulator will be abolished.
Payment Distribution Agencies will have to register in terms of the National Credit Act (NCA).
Credit providers will not be allowed to self regulate their affordability assessments of consumers applying for credit – codes will be enforced by the Minister of Trade and Industry.
Automatic removal of adverse consumer credit information from credit bureaus is provided for.
Credit providers may not terminate a debt review if the matter is before a Court.
The Minister of Trade and Industry may prescribe a limit on the cost of credit insurance.
The matter of Section 129 notices – the old final demands – has been clarified.
An application regarding prescription of debt is addressed. This means that no person may continue the collection of, or re-activate a debt under a credit agreement to which this Act applies; or sell a debt under a credit agreement to which this Act applies.
For more information contact: