Standard Bank believes it could take at least another two to three years to get rid of SA’s overhang of distressed properties, given the worrying state of consumers’ financial positions.
“As anticipated, banks have adjusted their credit underwriting to account for the effect of the credit amnesty” said Advocate Kate Thambiran, Managing Director of LUCID Clear Credit, a credit rehabilitation firm.
“People are under the impression that banks will no longer have any adverse credit information against their names – this is simply untrue,” says Kate Thambiran, MD of LUCID Clear Credit.
In terms of the National Credit Act, if a credit provider fails to conduct an affordability assessment before advancing credit to you, the provider could be guilty of entering into a reckless credit agreement.
CONSUMERS who bought houses before June 1 2007 are urged to check their bank statements to establish whether they have been overcharged on their home loan administration fees.
“The legislation obliges the consumer and credit provider to participate in good faith in the debt review, and any negotiations should result in responsible debt rearrangement. “I am of the view that the plaintiff’s failure to participate in the review proceedings is reckless.”
What credit card users must realize is that credit cards are a tool which, if used wisely, can help establish and maintain good credit, and finance major expenses, but if used foolishly can also be the key to one’s financial undoing.
NCC said low-income earners were particularly vulnerable and some domestic workers, for example, had paid 10% of their salaries in declined debit order penalty fees.
The Reserve Bank, on behalf of SA’s retail and commercial banks, made an application to the Department of Trade and Industry (DTI), to have the banks granted an exemption from various provisions of the CPA.
Reserve Bank governor Gill Marcus’s office is preparing to apply for an exemption for SA’s banks from certain sections of the Consumer Protection Act (CPA).