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Moving Forward
NATIONAL CREDIT REGULATOR
Lesiba Mashapa11 March 2014
PURPOSE OF THE ACT
1
.
Promote access to credit under sustainable
market conditions
Promote responsible lending & borrowing
(reckless lending & over-indebtedness)
Fairness & balancing the rights & responsibilities
of consumers & credit providers
Addressing & correcting imbalances in
negotiations power between credit providers &
consumers
Improve consumer credit information &
regulation of credit bureaux.
QUESTIONS
Has the NCA changed the
manner in which the credit
market functions?
Has it achieved its primary
purpose?
Has it addressed all market
conduct practices that are
unsustainable and destabilising?
… noting that the NCA has been
in existence for 7 years.
2
THE STRUGGLE FOR A BETTER CREDIT MARKET IN SA CONTINUES
Review of policy framework on
which NCA founded conducted
Review concluded that the policy
framework is sound & relevant
However, intended outcomes
always not materialised as
anticipated
Identified need to enhance certain
policies underlying NCA & improve
certain provisions of the NCA
3
IMPROVEMENT OF THE NCA
Closing gaps to facilitate the smooth functioning of the debt counselling process
Recognition of the Payment Distribution Agents
Enhance early rehabilitation of consumers in debt review & listed at the credit bureaus
Introduce standardised measures to enable credit providers to assess affordability
Additional regulation of the cost of credit
Recognition of Alternative Dispute Resolution Agents.
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ASSISTANCE TO CONSUMERS LISTED AT THE CREDIT BUREAUS
Once-off removal of adverse consumer credit information
This measure is intended to remove barriers to employment opportunities, rental accommodation & access to credit
Review of data retention periods to allow the removal of paid-up judgments & adverse information listings on a continuous basis
This measure eliminates the cost of repairing credit records & would provide an incentive to consumers to pay their debts.
5
Thank You
www.ncr.org.za
