1. National Credit Amendment Bill

2. Draft National Amendment Bill published in Government Gazette Number 41274 on 27 November 2017.
Presentation & submissions to the Portfolio Committee on Trade and Industry on 30, 31 January and 2 February

3. Debt intervention (relief) to Consumers with income below R7 500
Purpose of Bill
Debt intervention (relief) to Consumers with income below R7 500
General Support for the initiative but…

4. Consumer NCR Tribunal Credit Bureau
Consumer applies
NCR evaluate and refer to NCT
Credit Bureau flags
NCR submits orders to Credit Providers
Credit Providers restructure/write off
Credit Bureaus update and remove after defined period
Accept Application
Keeps register
Evaluate applications
Refer to Tribunal
Assess and suspend Reckless Credit & refer to Tribunal
Inform Credit Providers
Inform Credit Bureaus
Keep register
NCT – review – single member
Grant orders
Inform NCR
Grant extensions
Grant rehabilitation Orders
Flag Consumers
Remove flag
Update Consumer records
Amend Consumer records
Remove flag after max period
Credit Providers: No active role other to wait for Order and amend Clients’ debt agreement

5. Debt Intervention Comments – DTI Portfolio Committee
Undefined and unworkable process
Unconstitutional
New unaligned Process
Power of Minister?
Why R7 500?
Lack of defined process
NCR capacity and role
Annual review not feasible
Poor Man Sequestration?
Change to Section 3 =
change to purpose of NCA
Non-reporting of Reckless is Criminal Offence
Cost of Central register. S69 not previously implemented
Forced Credit Life
Arbitrary deprivation of property
Role of NCT and single member approval
Penalties – deviates from objective of bill
Access by Applicants to apply questioned

6. Debt Intervention Comments
Undefined and unworkable process
Unconstitutional
Power of Minister?
New unaligned Process
Why R7 500?
Lack of defined process
NCR capacity and role
Annual review not feasible
Poor Man Sequestration?
Change to Section 3 =
change to purpose of NCA
Non-reporting of Reckless is Criminal Offence
Cost of Central register. S69 not previously implemented
Forced Credit Life
Arbitrary deprivation of property
Role of NCT and single member approval
Penalties – deviates from objective of bill
Access by Applicants to apply questioned

7. Debt Intervention – DTI & NCR Comments
Recommend that the Bill be referred for constitutional certification
Support:
S88A, 88D, 88(A), 82A, 88C, 88B,
88(4), 88D, 88(4), 88E (1) to (6) but move to NCR, S106
Process of rule nisi be included
Financial distress to be defined
Credit Providers be allowed to make submissions to the NCR during the application evaluation stage
No comments on:
Process feasibility,
Cost of central register,
Staff, cost,
System requirements and cost
Convene a task team- to make technical inputs into the drafting of the Bill in order to align them to the policy position.

8. Debt Intervention: The Future
Wide Support for Debt Intervention…