BASA’s Presentation on the Draft NCA Amendment Bill
The Portfolio Committee on Trade & Industry has proposed changes to the National Credit Act. They have been taking feedback from the public and credit industry about the draft Bill. The public hearings give all the chance to consider possible issues surrounding the Bill.
The Banking Association of South Africa (BASA) made a presentation in which they expressed serious concerns. They pointed to the abundance of legislation which already makes responsible lending a priority, has reduced collection on prescribed debt and has impacted on their members in negative ways.
They pointed to the many debt remedies already in existence. In particular, they highlighted the positive role of debt counselling and debt review.
They stressed that some sections of the Bill appear unconstitutional (the type of matter they would take to the Constitutional Court if the Bill passes). They, in particular, feel that the NCR cannot be allowed to be both investigator and executioner issuing fines and writing off debts. They also have a problem with not being allowed to be involved in the assessment phase for debt intervention and not been able to present any information to the NCT.
‘BASA is of the respectful view that the existing debt intervention mechanism of debt review could be enhanced to provide appropriate debt relief to these consumers.’
Download the BASA Presentation:
More comments have been scheduled for Friday.