ANC welcomes adoption of National Credit Amendment Bill
29 August 2018
The African National Congress (ANC) in Parliament welcomes the adoption of the National Credit Amendment Bill by the Portfolio Committee on Trade and Industry today.
The ANC Study Group on Trade and Industry introduced the Bill as a Committee Bill in order to provide debt relief intervention for the marginalised poor. This was motivated by the fact that the South African natural insolvency system remained largely creditor-oriented and excludes the poor from the process, which is contrary to international trends and best practice.
The current statutory measures offering debt relief (i.e. sequestration; administration and debt review) require some form of disposable income or assets that limit access by the poor on financial grounds. The ANC was of the view that this constitutes unfair discrimination based on socio-economic status and also undermines the dignity of affected consumers. These exclusions accordingly affect the equal enjoyment of rights as envisaged in Section 9 and the right to dignity as envisaged in Section 10 of the Constitution.
The ANC welcomes the fact that the Bill introduces debt intervention measures to low income consumers who are over-indebted. There will now be a long-term intervention, similar to debt review, which will be administered and processed by the National Credit Regulator. This process will be free for the targeted group and the order will be issued by the National Consumer Tribunal.