Supreme Court Dismisses MFSA Appeal about Interest Rates
Micro Finance South Africa (MFSA) on behalf of their many smaller credit provider members took on the DTI and NCR when changes to the National Credit Act slashed interest rates on subsequent loans to consumers within the same year. For a while, it looked like MFSA were correct in saying that the DTI had not done sufficient research into the topic before making the changes. The court cases raged until the North Gauteng High Court upheld the DTIs changes to the NCA and Regulations.
‘changes to the National Credit Act slashed interest rates on subsequent loans to consumers within the same year’
This means that credit providers could only charge 5% per month on an initial short-term loan and then it had to drop to 3% if consumers applied for another short-term loan during the same year. This is a common occurrence for those taking pay day loans. Many consumers find they are unable to get through the month without taking yet another and another loan each month (or 2). This would then slowly force the consumer deeper and deeper into debt.
MFSA Appeal to the Supreme Court
MFSA members are set to be hard hit by this cut of +-40% income on subsequent loans and so MFSA appealed to the Supreme Court. The SCA has now dismissed the appeal and this means the 5% to 3% reduction stays in force.
‘this means the 5% to 3% reduction stays in force’
Auditor General Gives NCR Clean Audit The NCR has received a clean audit for the 2017/2018 financial year. This is an indication that the Auditor General found no irregularities or issues when the NCR was considered. The NCR, along with … read more
Gauteng High Court Rules For DTI & NCR over Interest Rates The Minister of Trade and Industry & the National Credit Regulator vs Micro Finance South Africa case no A172/17 The Full Bench of the North Gauteng High Court has … read more
Debt Review Awards Gala 2018 The 2018 Annual Debt Review Awards Gala was held on Saturday 2nd June at the River Club in Cape Town. The Awards recognises excellence in the field of debt review. Guests arrived from across the … read more
Debt Intervention Misinformation Already Starting It seems that the NCR is in for a very hard time in the weeks and months ahead as consumers and the media grab hold of the Debt Intervention concept mentioned in the Portfolio Committee … read more
What Might The NCA Amendments Bring? Since the National Credit Act came into effect with it’s updated and much improved Section 103(5) Induplum rule credit providers have avoided understanding the complex x by 2 formula. Section 103(5) sets a limit … read more
What Debt Relief Provisions Might Be Included In Amendments to the NCA? As South Africa falls deeper and deeper into economic hard times, more and more consumers are becoming debt stressed. Those who don’t yet have access to credit want … read more
Debtfree Magazine Online – Read It Right Now The latest Debtfree Magazine is available to read online right here (BELOW). This issue we not only catch up on the latest news and goings on in the industry but also consider … read more
DCASA Speaker Announced read more