1 / 20

NATIONAL CREDIT BILL PUBLIC HEARING PRESENTATION BY:

NATIONAL CREDIT BILL PUBLIC HEARING PRESENTATION BY:. WHO WE ARE. 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. “ The Loan Shark is Dead”.

ohunt
Download Presentation

NATIONAL CREDIT BILL PUBLIC HEARING PRESENTATION BY:

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  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” • R50 000 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

More Related