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[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 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 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 News, Credit Risk, Featured »

[30 Apr 2014 | No Comment | ]
Edcon pins hopes on Abil deal

IOL’s Nompumelelo Magwaza reports:
Retail giant Edcon is hoping to turn around its fortunes and increase its credit customer base through a potential deal with African Bank Investments Limited (Abil) as its second credit provider, but analysts believe the timing is wrong.
Edcon announced last week that it had signed a term sheet, which would form the basis for negotiations to establish Abil as a secondary provider to the retailer’s customers who did not fit Absa’s credit criteria.
Edcon sold its debtor’s books to Absa for R10 billion in 2012.
In its results for the …

Credit Risk, National Credit Act »

[5 Jul 2011 | No Comment | ]
New NCR CEO Appointment in Progress

It has been almost a year since former NCR CEO Gabriel Davel announced his resignation and over 7 months since that resignation became effective and  Business Day‘s Micahel Bleby now reports:
“THE National Credit Regulator may soon have a new CEO, bringing an end to months of leadership under an acting head, the Department of Trade and Industry said last week.
“The process of appointing the CEO is at an advanced stage,” department spokesman Clement Manoko said last week.
“Interviews were conducted and verification of qualifications and security clearance process completed recently.
“We will recommend appointment …

Credit Management, Credit Risk »

[23 Aug 2010 | No Comment | ]
Risk Based Pricing

We found an interesting introductory article on the concept of risk based pricing from what seems to be an ex pat South African, Brandan Le Grange, who works for Experian in Scandinavia and is credit risk professional:
“….Risk based pricing strategies seek to assign a fair price to each customer – or, more accurately, to each group of customers.  The measured difference in risk between each customer is used to assign differentiated prices.  The logic is that operationally every customer costs the same to service, it is only the cost of risk …