Credit Amnesty-what this really means for consumers

The Community Engagement Project on the Responsible Use of Credit invites you to listen to a discussion on the 2014 Credit Amnesty Regulations to be hosted on Unisa Radio.

The panel invited to take part in the discussion include the following role players in the consumer credit industry:

Mr Lesiba Mashapa
He is the Company Secretary for the National Credit Regulator, responsible for the regulation of the consumer credit industry

Mr Nicky Lala-Mohan
He is the General Manager: Legislation and Regulatory Oversight & the Company Secretary for the Banking Association South Africa. He is the Chairman of the IBFed Consumer Affairs Work Group; the Company Secretary for SABRIC; a Board member of Ombudsman for Banking Services Board; and a Member of the Sectional Titles Regulation Board. Nicky is responsible for various portfolios within the Banking Industry, including the legal committee where he chairs the Committee responsible for all new legislative and regulatory interventions.

Prof Michelle Kelly-Louw.
She is a professor at Unisa. Michelle has published widely in the fields of insolvency, banking and consumer credit law and her research has been cited with approval by the Constitutional Court and the Supreme Court of Appeal on various occasions. She has served on the panel of legal experts (legislative drafting) for the SA National Treasury for three years and also on the legal panel of the SA National Roads Agency. She is the vice-president of the International Association of Consumer Law and a member of various local and international law journals.  

Date: Monday 19 May 2014
Time: 11h00-12h00

Tune in via audio stream at: http://unisaradio.ndstream.net    

More information on credit amnesty: radioshow on Unisa radio

The‘Removal of Adverse Consumer Information and Information Relating to Paid Up Judgments Regulations’ came into effect on the 1st of April 2014. The following article explains what 'credit information' in this context is: http://www.polity.org.za/article/credit-amnesty-2014-04-10. Unisa Radio http://unisaradio.ndstream.net/) will host a session on credit amnesty on 19 May 2014. Representatives of the National Credit Regulator and the Banking Association of South Africa will attend this session. More detail will be published in due course.

Adverse credit records to be removed

From 1 April all registered credit bureaux must remove adverse consumer credit information relating to paid up judgements. This is according to the Removal of Adverse Consumer Information and Information Relating to Paid Up Judgements Regulations, 2014. These regulations were published in the Government Gazette on 26 February 2014.

Tips for spending wisely in 2014

The beginning of every year can be a quite expensive time. Below are some tips for spending wisely in 2014.

• Never go overboard on your purchases. Remember that debt accumulates with smaller purchases which on their own don’t amount to much, however, when they are all added together they make a huge dent in one’s finances. 
• Draw up a budget and stick to it (see our previous blogpost on how to draw up a budget).
• Use your cash wisely, for example, if you settle certain accounts early you might receive discounts.
•  Prioritise your home loan and rent.
• Avoid ‘buy now pay later’ deals as far as possible. 
• Always shop for cheaper options.
• Keep track of your expenses (compare expenses with your budget).

Tips for surviving credit difficulties

AVOID BORROWING TO PAY OFF DEBT ...

 

1. Avoid using credit cards to pay of debt.

 

2. Credit creates more debt.

 

3. If retrenched use the retrenchment packages to pay debt.

 

4. Cut down on unnecessary expenses or luxuries. \

 

Visit http://www.ncr.org.za/index.php?option=com_content&view=article&id=3 for more tips.

African Bank fined for reckless lending

After an investigation into reckless lending by the National Credit Regulator, African Bank has agreed to pay a R20 million fine.

It was earlier uncovered that African Bank lent millions of Rand recklessly.  Initially the Credit Regulator a R300 million fine for African Bank's reckless lending practices.  However, after a settlement has been reached between the Regulator and African Bank the fine was reduced to R20 million.

In the layman's language reckless lending takes place if a consumer is granted credit without the credit provider making sure that the consumer can afford it, or if credit is granted while the credit provider knows that the consumer cannot afford the credit.  In short reckless lending may also result in debt being written off.

 

Saving your Future

Did you know...? 

•  67% of adults don’t save
• South African Reserve Bank (SARB) indicates the average South African Household savings rate is around 1.7%, which is alarmingly low
• Many people will be forced to work for much longer than the average 40-year period

Understanding your financial needs and habits requires discipline which can save your future and protect your wealth. The Teach Children to Save South Africa (TCTS SA™) Campaign encourages saving through three ways.

Identify Your Needs vs Wants

• It’s important to distinguish between a ‘nice to have’ and a fundamental life requirement that adds real value to your children’s lives. Do I need a smart phone or do I want a smart phone?
• Understand the value of delayed gratification and yield the rewards you will get from responsible financial behaviour. Should I borrow money to take a holiday or should I save for it?

Learn to Save

• Learning to save is the first step in successful money management. So draw up a plan with both short and long-term goals.
•  Start saving and be disciplined – the earlier you start, the better.

Build Your Wealth

• Our youth needs to be taught the principles of the wealth cycle – mainly to learn how to save, spend, donate and invest earnings responsibly.
• Entrepreneurship is at the heart of job creation in South Africa. As an educational initiative, TCTS SA™ promotes the entrepreneurship route as an effective tactic to address high unemployment.

So where do I start and what are some of the ways to teach my children about money?  Visit:  http://www.banking.org.za/index.php/initiatives/teach-children-to-save/parents-and-guardians/