Minister Davies To Appeal Rate & Fee Ruling
MFSA Took The DTI To Court
The changes had put new limits on what could be charged and this had hurt the profitability of a lot of smaller credit providers. MicroFinance SA (MFSA) who represent about 500 different micro financing firms went to court on behalf of their members and asked the High Court to have the changes as set out in the regulations reviewed. They did this since they felt that the industry had not been considered and that the information the industry had provided had been overlooked. At the same time, others felt that the industry takes advantage of consumers caught in a debt spiral or debt trap (taking on one loan after another). The DTI had pushed for the changes as a result of government’s desire to curb unsecured short-term lending.
‘the court ruled in the favour of MFSA and it’s members’
At High Court, it certainly looked that way when the evidence was presented and the court ruled in the favour of MFSA and it’s members. Unhappy with the result, Minister Davies has now announced that he intends to appeal the ruling. He believes a different court will come to a different conclusion based on the evidence and facts.