NATIONAL CREDIT BILL I S MFUNDISI The Bill seeks to regulate the granting of credit to consumers as they have by and large been taken for a ride by lenders. Actually the bill is a double-edged sword that also serves as a wake-up call to for lenders. It affects a whole range of institutions, microlenders, bankers and retailers. It seeks to assist poor uneducated borrowers in this country who always find themselves in a debt trap because of reckless lending. The bill comes as a blessing as credit bureaux are required to be registered with the regulator and this measure will go a long way to prevent individuals from being blacklisted by unscrupulous borrowers who are not accountable to consumers. Obligations are placed on credit grantors to ensure that borrowers can afford the credit and in the same view borrowers will be entitled to reasons why the credit is refused. If granted it has to be explained how the credit will be paid back and what it will actually cost. All these to be done in the language the borrower knows. The good thing about this bill is that a credit granter canbe penalized for granting credit to an individual who cannot afford it. The bill is there to protect the lower-income sector who are always exploited by these financial vultures. The flip side of the bill is that despite the good intentions the increased administration costs could well increase the actual credit across the board. The bill sounds a death knell to arbitrary interest to loans as the interest rate will be determined by the Minister. This bill is a real wake-up call particularly to the unscrupulous credit grantors: Comply with the provisions or face extended litigation and debt write-offs. The UCDP supports the bill.
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