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Additions to the National Credit Amendment Bill

The Portfolio Committee on Trade and Industry has sent out a call to the industry and interested parties in regard to some extra changes they now want to propose after hearing all the submissions made during the public hearings on the National Credit Amendment Bill.

SA Parliament

 

 

You can download the Notice here: Further call for submissions on National Amendment Bill additions

 

 

 

Some of the proposed additions would be:

A new clause getting rid of the NCR board and rather putting it under the Minister (section 19 of the Act).

A new clause making it an offence where a credit provider charges consumers more than the allowed interest rates (section 100 of the Act).

A new clause capping and/or regulating the cost of credit insurance (section 106 of the Act).

Changing clause 20 about delivery of a section 129(1) notices so that it supports the finding in the Sebola and Another v Standard Bank of South Africa Ltd and Another case meaning that there will have to be proof that the notice was delivered (section 129 of the Act).

A new clause which will make it an offence to collect, sell, and try re-activate debts that have become “prescribed” or not collected on for over 3 years. (Section 133 of the Act).

A new clause which will make the DTI Minister a kind of super man issuing all sorts of binding regulations (OK so maybe not “all sorts of” they say regulations would be based on the Amendment Bill and these other extra changes).

What would be included in such regulations?

These regulations will include provisions for:

  • a ‘fit and proper’ test;
  • a process to deregister a PDA;
  • the duties, obligations and fees of Payment Distribution Agents and ADR Agents;
  • assessment criteria to determine if an applicant’s commitments to prescribed guidelines are sufficient;
  • a formula for penalty for late renewal of registration;
  • and termination of / withdrawal from debt review process.

If you would like to comment by the very short deadline of Monday 17th (of Feb) then you can email: ahermans@parliament.gov.za; and mherling@parliament.gov.za