Reminder for Comments on the National Credit Amendment Bill
In a further bid to offer over-indebted consumer’s relief, a Select Committee on Trade and International Relations drafted the National Credit Amendment Bill [B30 – 2018], also known as the “Debt Intervention Bill”.
On 30 October 2018, the Committee called for comments on the Bill. Compuscan advises those in the credit industry to take notice of the amendments to the National Credit Act as proposed in the Bill and to submit comments on the proposed Bill. Commentaries are still open until 2 November 2018.
Proposed changes to the National Credit Amendment Bill
The Bill seeks to amend the National Credit Act, 2005, so as to:
- provide for debt intervention; to insert new definitions;
- include the evaluation and referral of debt intervention applications as a function of the National Credit Regulator and to provide for the creation of capacity within the National Credit Regulator and logistical arrangements to execute this function;
- include the consideration of a referral as a function of the Tribunal;
- provide for the recordal of information related to debt intervention;
- require a debt counsellor to investigate whether an agreement is reckless;
- provide for a court to enquire into and either refer a matter for debt intervention or make an order related to debt intervention;
- provide for a Magistrate’s Court and the Tribunal to determine the maximum interest, fees or other charges when re-arranging debt and for guidance to be prescribed in this regard;
- provide for an application for debt intervention and the evaluation thereof;
- provide for the Tribunal to re-arrange a consumer’s obligations and make an order in respect of an unlawful credit agreement;
- provide for orders related to debt intervention and rehabilitation in respect of such an order;
- provide for mandatory credit life insurance to be prescribed;
- provide for offences related to debt intervention, prohibited credit practices, selling or collecting prescribed debt and related to failure to register as required by the Act;
- provide for measures when an offence is committed by a person other than a natural person;
- provide for penalties in relation to the newly created offences; to provide for the Tribunal to change or rescind an order under certain circumstances;
- require the Minister to make regulations related to a financial literacy programme;
- provide in a transitional provision for the application of this Amendment Act to credit agreements entered into before its commencement; and to provide for matters connected therewith.
Commentary on the National Credit Amendment Bill
Comments can be emailed to Mr Hlupheka Mtileni at [email protected] by no later than Friday, 2 November 2018.
In addition to the written comments, please indicate your interest in making a verbal presentation to the Committee.
Enquiries can be directed to Mr Hlupheka Mtileni on tel (021) 403 8077 or cell 083 709 8448
Issued by Mr ER Makue, MP, Select Committee on Trade and International Relations