Credit Providers Fees to be slashed?

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 and DTI would come back to the market with a massive slash to the rates credit providers can charge for some types of credit. They probably expected the NCR to push up the service fee charge by R10. Good news though, the service fee is probably going to go up by R10/ month to R60 now.

Unsecured Credit Rate to Drop by 7.88%

Credit Providers are however up in arms about the rate reduction on unsecured credit, a market area which is already in trouble and cooled of dramatically recently especially in the wake of the African Bank debacle.

Some of the changes are small others could reshape the way credit providers market credit in the future. Here is a comparison guide of the old and new proposed rates:

Download the proposed fee structure and feel free to comment on it: Gov Gazette 38911 Draft Credit interest rates and fee structure for public comment

Interested parties may submit their written comments within 30 days from the date of the
publication of this notice (no later than Saturday, 25 July 2015) to:

 
Director-General, Department of Trade and Industry
Private Bag X84
Pretoria
0001
Individuals may also hand deliver/email/fax their written comments to:
77 Meintjies Street
Block B, 1st Floor
Sunnyside
Pretoria
Tel: 012 394 1804
Fax: 012 394 2804
Email: SKumkani@thedti.gov.za
For Attention: Mr Siphamandla Kumkani