MFSA’s Presentation on the Draft NCA Amendment Bill
This week the Micro Finance Association of South Africa got to make a presentation in regards to concerns they have over the Portfolio Committee on Trade & Industry’s proposed amendments to the National Credit Act.
The Draft Bill proposes the introduction of something called ‘debt intervention‘ which could see many consumers unsecured debt repayments be frozen for up to 24 months or even written off.
MFSA came out strong against the bill which they feel will cause more problems than it solves. They feel that those who might benefit need to be better identified and the process refined. They pointed out that too many debt relief measures could actually push their members out of business and cause consumers to have to turn to unregulated and illegal credit providers.
‘up to 5 million people could potentially qualify’
They say that up to 5 million people could potentially qualify (as the Bill currently stands) and around R3.2 Billion Rand in debt could be involved. They suggest focussing on the consumers who statistically most need help and explained who these were and how they could tell. They suggested that total debt write off should be avoided at all costs and that further delays in repayment where much preferable.
‘ Such measures would jeopardise the stability of the credit system.’
Download the MFSA Presentation