Easy credit loans are still the downfall of many people in South Africa, and the FF Plus is in favour of having reckless lending curbed and to extend a helping hand to people who are already in the whirlpool of debt, Adv. Anton Alberts, the FF Plus’ parliamentary spokesperson on Trade and Industry, says.
Adv. Alberts says that in the light of the high levels of debt in South Africa, and the fact that credit is increasingly being extended in a reckless manner, the FF Plus supports the parliamentary portfolio committee on Trade and Industry’s initiative to draft an amendment bill to adjust the National Credit Act, by having issues addressed in it which is currently not included in the Act.
He said the objective of it, in short, is to sharpen measures relating to debt counseling, in certain circumstances to have information of debtors removed from so-called blacklists, to create agencies which will act as debt mediators, and to ensure that debt which prescribes (older than three years) is not collected under any circumstances.
“It has to be understood that this process is however only putting a plaster on the boil. The ultimate solution for the problem of people with debt is to ensure that strong economic growth, which would create jobs, takes place.
“This is currently not happening under the ANC government. Economic growth should always remain the central focus, while this process should be seen as a lateral process that could solve the debt problem.
“Regarding credit providers, including banks, it has to be emphasised that they also have a responsibility not to allow bad debt to accumulate to such an extent that it damages the economy.
“People who are in debt are vulnerable, and we have to protect them. It also means that decisive steps should be taken to prevent assets from being sold in execution auctions at below market value, which leaves a debtor with no assets, but still with residual debt.
“It is a practice which takes place often, and the FF Plus will try to bring an end to it through the amendment bill.
The FF Plus will, therefore, participate in the legislative process in the committee to ensure that the approach followed retains a balance between credit providers and lenders,” Adv. Alberts, says.
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