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
MFSA Public Hearings Oral NCA Amendment Bill_DRAFT_29Jan2018_(To Andre Hermans)
MFSA_Submission_Draft NCA Bill_15Jan2017
Minister Davies To Appeal Rate & Fee Ruling Recently the Pretoria High Court set aside certain changes that were made to the National Credit Act (NCA) Regulations about how much a credit provider can charge for certain types of credit. … read more
Suddenly Charged an Extra R10/month? It’s Illegal When the DTI recently published a change to the monthly service fee that creditors can charge consumers there was a R10 increase from R50 to R60 per month. This followed after MFSA forced … read more
Maximum Interest Rates – As Of May 2016 With the failure of MFSA to get the courts to hold off on the implementation of the new changes to the maximum amount of interest that credit providers can charge, the industry … read more
MFSA Unable To Prevent New Maximum Rates From Coming Into Effect In a bid to protect the interests of their members, credit provider association Micro Finance South Africa (MFSA) made an urgent application to the Courts to prevent the amended … read more
MFSA Go To Court Micro Finance South Africa have made an urgent application to court to have the new fee regulations (coming into effect in early May), which will see fees for unsecured credit greatly reduced, prevented from coming into … read more
Credit Fees & Rates Regulations Published Dr Rob Davies, the Minister of Trade and Industry has finally published the new limitations of Fees and Interest Rates regulations in the Government Gazette. The Fees limits and new way to work out … read more
DTI & NCR Planning to slash Cost of Credit? When MFSA took the NCR to task in regard to service fees that can be charged on credit products (currently R50/month) they probably never had it in mind that the NCR … read more
MFSA Force NCR to Obey National Credit Act The National Credit Regulator (NCR) has been ordered by the North Gauteng High Court to review service fees on credit accounts by the end of May 2015. R50/Month The NCR recently found themselves … read more