Abstract
According to statistics provided by the National Credit Regulator (NCR) 41.6% of the 17.57 million credit-active South Africans had impaired credit records in December 2008. This "impaired records" figure rose by 4% when compared to the quarter which ended in December 2007. Since December 2008 the number of consumers with impaired credit records has further increased. As at March 2009 credit bureaux had records for 17.61 million credit-active consumers. The data showed that the percentage of consumers with impaired records was 42.4% at the quarter ending March 2009. This was an increase of 0.8% when compared with the quarter ending December 2008 and an increase of 4% when compared with the quarter ending March 2008.
Highlights
According to statistics provided by the National Credit Regulator (NCR) 41.6% of the 17.57 million credit-active South Africans had impaired credit records in December 2008.2 This "impaired records"3 figure rose by 4% when compared to the quarter which ended in December 2007
Further statistics5 show that in December 2008, just over 42 000 consumers have applied for debt review in terms of section 86 of the National Credit Act (NCA),6 less than 1600 cases have managed to proceed through our courts
In this regard it should be noted that section 86(5) of the NCA compels consumers and credit providers to "participate in good faith in the review and in any negotiations designed to result in responsible debt rearrangement"
Summary
According to statistics provided by the National Credit Regulator (NCR) 41.6% of the 17.57 million credit-active South Africans had impaired credit records in December 2008.2 This "impaired records" figure rose by 4% when compared to the quarter which ended in December 2007. Further statistics show that in December 2008, just over 42 000 consumers have applied for debt review in terms of section 86 of the National Credit Act (NCA), less than 1600 cases have managed to proceed through our courts These statistics indicate that the debt counselling process is not. The research report by the Law Clinic mentioned above, indicated that credit providers and debt counsellors not co-operating in the debt counselling process were one of the main reasons for the non-functioning of the process.10 In this regard it should be noted that section 86(5) of the NCA compels consumers and credit providers to "participate in good faith in the review and in any negotiations designed to result in responsible debt rearrangement". Credit providers not co-operating headed the list (72% of debt counsellors interviewed mentioned this as the main problem) This was followed by insufficiency of the Act and Regulations (53%), consumers not co-operating (36%) and incompetent debt counsellors (27%).
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