Public Hearings on National Credit Amendment Bill – Day Four report

Public Hearings at Parliament – Day Four

Day Four of the public parliamentary hearings into the National Credit Amendment Bill featured several key industry players including the Reserve Bank of South Africa.

Reserve Bank

It was clear from start to finish that the Reserve Bank were more focused on their upcoming role under the twin peaks model rather than the changes to the NCA itself. Very little of the presentation related to issues or problems they have with the amendments. It was however highlighted that there will be some future issues that might arise regarding regulating and who would regulate what. This is exactly what the developing twin peaks model is meant to sort out.

Wonga Finance

It was rather surprising to see how little flak Wonga finance received after the portfolio committee had previously made several not to complimentary comments about “pay day lenders” and other such institutes. The presentation went well with only a few pointed questions but everyone was on their best behaviour.

Personal Finance

Reporting on the debt review industry has given Personal Finance some concerns over the past while in regard to how consumers are treated. One of the major focuses of their presentation was the need for PDAs and Credit Providers to supply accurate monthly statements to consumers. At present this is an issue that PDAs are addressing while many major credit providers have fallen short – in contravention of the NCA.  Personal Finance also proposed that attorneys and Debt Counsellors should rather receive a small portion of their overall payment each month throughout the entire debt review period rather than larger payments in the first (DC) and second (attorneys) months. They related two specific accounts of how consumers can face problems with their debt review if certain fees are not paid. For example, a consumer who faces legal challenges might not be defended by an attorney because they had not paid the attorney.

It was also announced that there would be another public session on Tuesday 4th of February.