National Assembly to hear NCA Amendments
The National Credit Amendment Bill which is set to change the former National Credit Act will be before the National Assembly today. The Bill will now include the last minute changes added by the Portfolio Committee on Trade and Industry last week. The last minute changes will make collection of prescribed debt a thing of the past.
It is a common practice for credit providers to sell their old debt that they have not bothered to / been able to collect on for years to attorneys and collection agents. This way they are able to make a last few rand on old debts. The collection agents then try convince consumers to make payments on these old debts and revive the accounts. This will now potentially be illegal. This will have big ramifications for businesses that collect such debt. It will however protect consumers from abuse of prescribed debt.
It now remains to see if the National Assembly will adopt the Bill. DTI Minister Rob Davies is scheduled to make press announcements on Thursday afternoon..so that’s a good sign, right?