The President signs into law the new credit bill, pushing for consumer debt write-off

SOUTH AFRICA - Report 21 Aug 2019 by Iraj Abedian

South African consumers have been hard hit by the effects of the country’s current tough economic environment, which is compounded by increasing living costs and rising unemployment. This has not only resulted in increasing total consumer debt, but has also led to total savings' being negatively affected. According to the National Credit Regulator (NCR), up to 10 million South Africans remain in arrears on their debt.

Back in September 2018, Parliament’s Trade and Industry Committee adopted a bill aimed at bringing debt relief to over-indebted consumers who have no income or earn below R7500 per month. On August 15, 2019, President Ramaphosa finally signed the bill into law. The bill has, however, been labelled as controversial due to its sparking fears of driving up the cost of loans and limiting access to credit as banks might tighten lending conditions.

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