1. NATIONAL CREDIT BILL PUBLIC HEARING
PRESENTATION BY:

2. WHO WE ARE

3. 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

4. “The Loan Shark is Dead”

5. “The Loan Shark is Dead”

6. BORROWER TESTIMONIALS

7. 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

8. For Consideration (79) 3(a)Over-indebtness settlement
(80) 3(a) Reckless Credit – Credit Limit
101:3 a+b Ensure all players are treated equally – Include Banks?

9. 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

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

11. CREDIT AGREEMENTS Bill describes “small credit agreements”
R minimum (Housing & SMME)
Term Lending
30 Day Lending / Emergency

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

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

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

15. UNLAWFUL AGREEMENTS National Payment System Card & Pin = Pref Debits
Equal access for all players

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

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

18. CONSUMER EDUCATION The most powerful consumer is an informed consumer
Matter of National Interest
Joint responsibility
Requires mega- thinking
Project – 10 years

19. INTEREST RATES, FEES AND CHARGES
Impact of the cap on interest: consider practical issues – Term and 30 day Loans
Caps do not Improve Access
Don’t feed the Loan Shark