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Articles in the Credit News Category

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[2 Feb 2015 | No Comment | ]
Proposed Guidelines for “Statutory in Duplum” Interest & Charges Cap

With consumer debtor’s under pressure the government seems to focusing on the interest that they are being charged. The Department of Trade and Industry has published a PROPOSED GUIDELINES FOR THE INTERPRETATION AND APPLICATION OF SECTION 103(5) OF THE NATIONAL CREDIT ACT 34 OF 2005 (GOVERNMENT GAZETTE No. 38419 , 30 JANUARY 2015). This as a result of “uncertainty in the credit industry regarding the implementation of Section 103(5) of the National Credit Act. The National Credit Regulator therefore publishes these proposed guidelines for information and comment by the public …

Credit News, Featured, Legal News »

[29 Jan 2015 | No Comment | ]
The Prescribed Rate of Interest to be linked to the Repo Rate

In July last year we wrote on the first change to the interest rate in terms of the Prescribed Rate of Interest Act in over 20 years.
Yesterday the Department of Justice and Constitutional Development announced an Judicial Matters Amendment Bill, which included a fixed method of calculating and making the Prescribed Rate of Interest more market related.
The relevant part of the Departments news Statement read:
“At present the Prescribed Rate of Interest Act, 1975, provides that if a debt bears interest and the rate at which the interest is to be calculated …

Credit Law, Credit Management, Credit News, Credit Seminars, Featured »

[6 Oct 2014 | No Comment | ]
Commercial Credit Management Seminar – Durban 16th October 2014

COVERING:
With the continuing effects of the economic downturn being felt by businesses, the importance of good credit management has been   magnified and all companies credit management policies need to be reviewed and upgraded in order to avoid your company becoming a statistic of the poor economy. In addition credit management is also being impacted by the new legislation such as the National Credit Act, the Consumer Protection Act and the new Companies Act.
This is a full day seminar in Durban on the  16th  October 2014 aimed at commercial creditors (businesses who supply …

Credit Law, Credit Management, Credit News, Credit Seminars, Featured »

[6 Aug 2014 | No Comment | ]
Commercial Credit Management Seminar – Cape Town 10th October 2014

COVERING: With the continuing effects of the economic downturn being felt by businesses, the importance of good credit management has been   magnified and all companies credit management policies need to be reviewed and upgraded in order to avoid your company becoming a statistic of the poor economy. In addition credit management is also being impacted by the new legislation such as the National Credit Act, the Consumer Protection Act and the new Companies Act. This is a full day seminar in Cape Town on the  10th  October 2014 aimed at commercial …

Credit Law, Credit Management, Credit News, Credit Risk, Headline, National Credit Act »

[4 Aug 2014 | No Comment | ]
Draft NCA Regulations and National Consumer Tribunal Rules Published

The Minister of Trade and Industry, Dr Rob Davies, has published the National Credit Regulations and regulations for the amendment of regulations dealing with functions and rules of the National Consumer Tribunal in Government Gazette No. 37882 of 1 August 2014. The draft regulations are a result of the National Credit Amendment Act, 2014 (Act No. 19 of 2014), which was signed into law by the President on 19 May 2014.
This notice, among other things, contains affordability assessment regulations that provide criteria credit providers must adhere to before credit can …

Credit Law, Credit Management, Credit News, Featured »

[30 Jul 2014 | No Comment | ]
Prescribed Rate of Interest to change and it’s not a variable rate

 
We previously pointed out that the Prescribed Rate of Interest was set to change after having remained unchanged at 15.5% per annum from 1 October 1993.
 
It has now been confirmed that the prescribed rate of interest will be reduced to 9% on the 1st August 2014 in terms of GOVT NOTICE NO R.554 of the 18 July 2014.
 
Furthermore, and as explained previously, the Prescribed Rate of Interest Act (55 of 1975) sets the maximum rate of interest that can be charged on mora interest (over-due payment) and which is also used in …

Credit News, Credit Risk, Economic News »

[26 May 2014 | No Comment | ]
Reckless lending requires oversight, not just denial

 
A very interesting article in the Business Day by Mark Barnes .
IF THE latest set of results in the unsecured lending sector is anything to go by, there is trouble in the land. Is there? How did this happen and is a messy bubble about to burst?
May is the new January. After all the holidays in April, April has become the new December, for spending and holidays, that is. Normally, in January, after the holiday spending spree, there is little or no space left in those credit cards, all of …

Credit News, Debt Collections, Featured »

[14 May 2014 | No Comment | ]
Monetary Jurisdiction of Courts to Change

The jurisdiction of which court hears any particular matter is largely (but not soley) determined by the monetary value of the claim.
With effect from 1 June 2014, the monetary jurisdiction in Magistrates Courts is changing:
District Magistrates Court – up to R 200 000
Regional Magistrates Court – up to R400 000
The High Court will therefore will hear matters where the monetary value exceeds R 400 000.00.
 

Credit Management, Credit News, Credit Risk »

[12 May 2014 | No Comment | ]
Most People in the World Have No Idea How to Manage Their Money

Moisés Naím reporting in the Atlantic writes on the international phenomena of lack of financial literacy among people. Using a simple 3 question test the results of the research of economists, Annamaria Lusardi and Olivia Mitchell, and the results reveal startling levels of financial illiteracy across the world.
They call attention to a perilous paradox: Financial ignorance is widespread even as the world has changed in ways that make such ignorance more dangerous than ever before. They write, “Financial markets around the world have become increasingly accessible to the ‘small investor,’ as …

Credit Law, Credit News, National Credit Act »

[9 May 2014 | No Comment | ]
No boom in car sales after credit amnesty

DAVID FURLONGER of Business Day reports:
CONSUMERS hoping a recent credit amnesty would open the door for them to buy new cars received a reality check last month, with new vehicle sales falling by 16% month on month.
Banks continued to hold the line against credit risk despite reporting a surge in finance applications after an amendment to the National Credit Act allowed some consumers to re-enter the market following previous bad-debt judgments against them.
WesBank research head Brian Mahoney reported a 6.7% increase in new-car finance applications last month, compared to April …