NATIONAL CREDIT BILL PUBLIC HEARING

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NATIONAL CREDIT BILL PUBLIC HEARING PRESENTATION
BY
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WHO WE ARE
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• 3 million borrowers
• Section 21 Company
• PriceWaterhouse Coopers
• 1250 microfinance offices registered /growing
• Largest industry body in SA
• Committed to a sustainable future for the
  industry

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The Loan Shark is Dead
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The Loan Shark is Dead
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BORROWER TESTIMONIALS
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• DEFINITIONS
• Incidental credit agreement - exclude credit
  agreements ensure total Inclusivity of all
  Credit Providers
• Educational loans
• - Loans to minors
• - Reckless Lending
• - Area for growth / impact

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For Consideration

• (79) 3(a)Over-indebtness settlement
• (80) 3(a) Reckless Credit Credit Limit
• 1013 ab Ensure all players are treated equally
  Include Banks?

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• PAWN BROKERS
• Currently, exempt from the Bill
• Impact on Second Economy
• Lending on pawn broker premises must be subject
  to the Bill. Full registration
• Area for potential abuse

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• CREDIT BUREAUS
• Need to be Regulated
• Essential part of value chain high Impact on
  consumer and market

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• CREDIT AGREEMENTS
• Bill describes small credit agreements
• R50 000 minimum (Housing SMME)
• Term Lending
• 30 Day Lending / Emergency

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• NATIONAL CREDIT
• REGULATOR
• Mandatory interaction with the industry essential
• Regulations need to be Practical
• Proper consultation leads to solutions, growth
  and consumer development

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• REGISTRATION
• REQUIREMENTS
• Suitable timeframes for the implementation of BEE
• Funding for growth / ownership

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• OVER-INDEBTEDNESS
• Emergencies are a reality
• Microfinanciers know their customers
  personally!!
• Lenders open books for inspection

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• UNLAWFUL AGREEMENTS
• National Payment System
• Card Pin Pref Debits
• Equal access for all players

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• DEBT COUNSELLORS
• Critical and challenging
• High standards - skills, insight, experience and
  maturity
• Consistency.Nationally
• Technology EFFICIENCY

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• CONSUMER RIGHTS
• Official languages and documentation - Regulator
  should provide one standard contract
• 95 of microfinanciers serve consumers in their
  mother tongue

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CONSUMER EDUCATION

• The most powerful consumer is an informed
  consumer
• Matter of National Interest
• Joint responsibility
• Requires mega- thinking
• Project 10 years

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• INTEREST RATES, FEES
• AND CHARGES
• Impact of the cap on interest consider practical
  issues Term and 30 day Loans
• Caps do not Improve Access
• Dont feed the Loan Shark

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