The Select Committee on Trade and International Relations is looking for public submissions concerning many facets of debt intervention.
The Committee seeks to amend the 2005 National Credit Act in order to make more space for debt intervention. The envisaged changes have been encapsulated in the National Credit Amendment Bill [B30 2018], which the Committee is seeking commentary on from stakeholders and the general public.
As a whole, the Bill seeks to allow more space for debt intervention applications, evaluations and rehabilitation. This includes the prescription of mandatory life insurance, to allow for debt intervention orders, as well as to legally deal with newly stipulated offences in this regard, into the National Credit Act.
As a result, this new Bill aims to widen the functional authority of the relevant bodies; The National Credit Regulator, the Tribunal as well as the Magistrates’ Courts. Although the following does not apply as a whole to all the relevant bodies, these new functions are said to include but are not limited to authority over debt referrals and evaluations, the determination of maximum interest and changing consumer obligations.
Beyond this, the Bill seeks to include another court that deals with various facets of debt intervention referrals as well as to include a requisite debt counsellor, whose role is to analyse risks associated with agreements. The Bill also requires the Minister to enact regulations with regards to a financial literacy programme as well as to provide a transitional course towards the implementation of this Act.
You can enquire or submit your written commentary on or before Friday, 2 November 2018 via email at [email protected].
If you would like to present your commentary verbally in front of the Commission, you should indicate so as part of your written submission.