FF Plus rejects the Credit Amendment Bill as it is wrong instrument to relieve poverty
12 September 2018
How can one help those with serious debt problems when their situation is so critical that not even debt counselling can offer a solution? This is one of the problems that the National Credit Amendment Draft Bill must address.
Such complex problems require a holistic approach where factors that perpetuate poverty, like the economic environment, are taken into account. At present, poverty is on the rise due to poor economic growth and there exists general consensus that the government's policy of interfering in the market, misappropriation and corruption lies at the root of it all.
Given this context, it is obvious that creating and implementing debt counselling processes for a population with an unemployment rate of more than 30% is like putting a band-aid on a terminally ill patient. It may offer some relief in the short term, but it will not save the patient.
Short term and cosmetic solutions are not the answer. The final Amendment Bill did not require a socio-economic impact study of the matter and it may, therefore, have unforeseen negative consequences.