Abstract
Responsible lending has become a very pertinent issue on the agenda of credit regulators across the globe who seek to combat the causes of consumer over-indebtedness. In this context the use of “pre-agreement assessment” as a tool to filter out those instances where, based on a consumer’s creditworthiness or ability to repay, credit should not be granted to such consumer, is a feature common to the lending regimes of various jurisdictions.This contribution consists of two parts: Part 1 provides a critical discussion of the reckless credit provisions of the National Credit Act 34 of 2005. Part 2 details the responsible lending measures contained in the EU Consumer Credit Directive and the EU Mortgage Credit Directive and provides an appraisal of the responsible lending measures introduced by Belgium, being a jurisdiction that has always been very pro-active in the context of consumer credit protection.
 
 
Highlights
Credit is part of the lives of millions of consumers across the globe
Part 2 details the responsible lending measures contained in the EU Consumer Credit Directive and the EU Mortgage Credit Directive and provides an appraisal of the responsible lending measures introduced by Belgium, being a jurisdiction that has always been very pro-active in the context of consumer credit protection
When one has regard to the definition of "financial means, prospects and obligations" in the Act it is evident that the credit provider will have to obtain information regarding the consumer's income, the regularity of such income, and that of a person who customarily contributes to the income and shares the consumer's obligations, such as a spouse
Summary
The substantive and procedural landscape of credit regulation in South Africa underwent a massive change with the enactment of the National Credit Act 34 of 2005 (NCA) that came into full effective operation on 1 June 2007. This Act replaced the outdated legislation that previously provided the framework for credit regulation, namely, the Credit Agreements Act, that regulated credit instalment sale and lease agreements in respect of movables, and the Usury Act, that regulated the same agreements and money lending transactions. In certain instances the Act does provide for deviations or exceptions based on the type of agreement, or contains provisions that apply only to certain types of credit agreements
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