Moving Forward NATIONAL CREDIT REGULATOR Lesiba Mashapa 11 March 2014

PURPOSE OF THE ACT 1.  Promote access to credit under sustainable market conditions  Promote responsible lending & borrowing (reckless lending & over-indebtedness)  Fairness & balancing the rights & responsibilities of consumers & credit providers  Addressing & correcting imbalances in negotiations power between credit providers & consumers  Improve consumer credit information & regulation of credit bureaux.

QUESTIONS  Has the NCA changed the manner in which the credit market functions?  Has it achieved its primary purpose?  Has it addressed all market conduct practices that are unsustainable and destabilising?  … noting that the NCA has been in existence for 7 years. 2

THE STRUGGLE FOR A BETTER CREDIT MARKET IN SA CONTINUES  Review of policy framework on which NCA founded conducted  Review concluded that the policy framework is sound & relevant  However, intended outcomes always not materialised as anticipated  Identified need to enhance certain policies underlying NCA & improve certain provisions of the NCA 3

IMPROVEMENT OF THE NCA  Closing gaps to facilitate the smooth functioning of the debt counselling process  Recognition of the Payment Distribution Agents  Enhance early rehabilitation of consumers in debt review & listed at the credit bureaus  Introduce standardised measures to enable credit providers to assess affordability  Additional regulation of the cost of credit  Recognition of Alternative Dispute Resolution Agents. 4

ASSISTANCE TO CONSUMERS LISTED AT THE CREDIT BUREAUS  Once-off removal of adverse consumer credit information  This measure is intended to remove barriers to employment opportunities, rental accommodation & access to credit  Review of data retention periods to allow the removal of paid-up judgments & adverse information listings on a continuous basis  This measure eliminates the cost of repairing credit records & would provide an incentive to consumers to pay their debts. 5

Thank You