Issuance of the regulations is a sequel of Parliament’s and Cabinet’s decision that household over-indebtedness should be curbed.
Trade and Industry Minister Rob Davies, who published the regulations last month in consultation with the Minister of Finance, says the regulations are one of the many that are already issued to deal with household over-indebtedness.
The regulations will come into effect on 10 August 2017 and will only affect credit agreements concluded on or after the date of implementation.
The regulations include:
The dti said the Minister of Finance has to concur with Minister Davies before the issuance of the regulations.
Officials of the Department of Trade and Industry, National Treasury, the Financial Services Board (FSB) and National Credit Regulator worked tirelessly on the Regulations until the Ministers’ concurrence and issuance.
The Regulations makes several provisions including:
Minister Davies said the regulations, read together with the aforementioned implemented regulations, court judgments on garnishee orders and illegal deductions on social grants, will make a sizeable dent in the reduction of household over-indebtedness.
“The dti also appreciates the recent judgment of the National Consumer Tribunal (NCT), relating to the deregistration and stoppage of retention of debit cards, credit cards and identity documents of borrowers by micro-lenders.”
The Department of Trade and Industry and the National Credit Regulator (NCR) will be embarking on aggressive education and awareness on the Regulations and other credit matters.
The draft Credit Life Insurance Regulations were published for public comment in November 2016.
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