In another twist involving the public protector’s office‚ the Minister of Co-operative Governance an.
The National Credit Act would apply retrospectively and transactions entered into before the implementation of the act, which is in June, would remain valid and enforceable, the National Credit Regulator's (NCR) senior manager on education and strategy, Peter Setou, said yesterday.
He clarified that agreements between the banks, micro-lending institutions and retailers were subjected to debt restructuring and provisions such as reckless lending would not apply to these transactions granted before June.
His comments come after reports that credit bureaus have been inundated with calls from consumers who wanted their debts cancelled because they believe that they were unfairly over-indebted and are eligible to have those debts cancelled.
"We should also note that debt counselling is aimed at helping consumers who are over-indebted and at rescheduling or restructuring the debt to manageable levels, and is not about debt pardoning," said Setou.
Debt counselling services will be available from June to consumers who are unable to honour in a timely manner all credit agreements to which they were party, as indicated by their history of debt repayment.
Setou pointed out that the National Credit Act, which was signed into law by President Thabo Mbeki in March, was preceded by extensive research and rigorous consultations with various stakeholders including, benchmarking with international best practices. - BuaNews