Creditor could challenge National Credit Amendment Bill
Over the last year the NCR and DTI called for comment on the National Credit Act and improvements that could be made. After many months and public meetings the DTI then proposed a National Credit Amendment Bill. The Bill was set before Parliament and a special portfolio committee researched the proposed BIll. They held public meetings and asked credit providers, consumers and Debt Counsellors to submit comments. Debtfree DIGI covered the process throughout. You can read some articles here:
It seems however that some creditors (or at least one) missed the boat and never got to have their say.Sandton based creditor Transaction Capital feels they were left out of the extensive comment phase of the National Credit Amendment Bill and are not happy about it. They have sent letters to members of parliament and spoken to the press about being left out. They are even thinking of spending a whole lot of money at Court level to delay the Bill being properly enacted even if it is published in the Government Gazette. Transaction Capital might be better known to you under these brands:
They have raised concerns that the process for comments on the National Credit Amendment Bill was not followed correctly. They say that the call for comments should have been published in the Government Gazette and not mailed to creditors and Debt Counsellors on the DTI mailing list. Transaction Capitol say they need about 4 months to draft a response to the National Credit Amendment Bill and the ramifications thereof. It is unclear if this is from this point or from the time when they first became aware of the call for comments over the last year.
Concerns about new provisions of the Bill?
The new Bill and the Regulations that will now be published will make it a punishable offense to try reactivate prescribed debt to sell and buy old debts. The changes will also stop creditors from trying to ‘duck out of’ the debt review process. SA Taxi in particular has not got the best reputation in the industry in regard to debt review. Their fight with certain Debt Counsellors and the debt review process is a much discussed topic in the industry. There will also be consequences to creditors who over charge for certain things. Are these the items that they wish to comment on? Is this a delay tactic to allow collections firms more time to try activate prescribed debt? Has there been a serious breach in the proper way of calling for comment? Did other creditors miss the chance to have their say and influence the outcome of the Portfolio Committee’s final draft which was approved by the National Council of Provinces?
Rumor has it that the President has already signed the Bill and it is scheduled for publishing in the Government Gazette. It is unclear what Transaction Capital’s comments might be and why they missed the deadline. Maybe they were too busy reading the Government Gazette to check their email or a newspaper.
Visit their website here: http://www.transactioncapital.co.za/