Tag: National Credit Act (NCA)

South Africans are significantly indebted, with a large portion of their monthly income going toward servicing debt. This means that for every R100 of disposable income, South Africans currently owe R62.70. We’ve observed a combination of high interest rates, rising living costs and slow income growth driving the high levels of indebtedness.

Over-indebtedness is becoming a pervasive issue in South Africa. It carries profound legal, psychological and social consequences. Beyond its clear economic impact, excessive debt has been linked to deteriorating mental health, impaired decision-making, and reduced functional capacity. These effects raise a critical question for employment law: to what extent can over-indebtedness constitute incapacity or serve as a mitigating factor in cases of employee misconduct?

South Africa’s economic landscape is challenging even the most resilient consumers. In recent years, high inflation and soaring interest rates have taken a toll. At the same time, stagnant economic growth, rising fuel prices and a weaker rand are putting tremendous pressure on household finances.

If you have taken out a loan or a store account, or have a credit card or a home loan, you have a credit record. A great way is to put your finances in order, especially after the costly generosity of the festive silly season – not to mention Black Friday. 

It's not easy to get a mortgage on your dream home if you're not employed full time and earning a fixed salary. Freelancers, those working on commission or sourcing their income from gigs, and many other independent earners, often find themselves facing a brick wall when applying for a home loan from banks.

The Consumer Protection Act (68 of 2008) was launched in 2008 and provides South Africans with key protections against the ambiguous wording and vague language traditionally associated with some contracts and professional literature.

No new business can prosper without access to start-up capital, and the regulatory environment must not stand in the way of this process. In other words, South Africa’s economic future is not served by do-gooder statutory restrictions on financing. As such, significant amendments should be made to the National Credit Act, as well as the Banks Act, to ease pressure on small businesses that seek to finance their growth. 

The Intergovernmental Fintech Working Group (IFWG) has published a new blog on Open Finance, noting that South African regulatory authorities have started looking at open finance as it relates to their respective mandates.

All bank customers have a right to expect to be treated fairly, reasonably and ethically by their bank. This right is reinforced by the banks undertaking not to unfairly discriminate any customer on grounds such as marital status, gender, age or race in the provision of banking services or in the quality (and terms) of the services that are offered to the consumer.

Keep up to date on the most important Financial Services Regulation developments in South Africa in June 2021.