National Credit Bill workshop March 2006 Tami Sokutu

“ W hile one party may possess the levers of power, one party does not possess a monopoly on good ideas. Good lawmaking, after all, is about the ability to craft effective solutions” B ill O wens

NCB IS THE CULMINATION OF A CONSIDERABLY LENGTHY PROCESS May Technical Committee – review of the consumer credit market Report produced and handed over to DTI in October 2003 This was followed by the Consumer Credit Policy Framework October 2004 – 1 st draft Bill December 2005 passed in Parliament – now with President of the Republic THE BILL PROPOSES TO REPEAL: the Usury Act, 73 (1968) Credit Agreements Act, 75(1980) and the Exemption Notice, 1999 Background

Improve transparency Prohibit unfair contractual terms and practices Prohibit anticompetitive practices Curb reckless credit extension Provide measure to assist over-indebted consumers Regulate information acquired, held and reported by Credit Bureaux Create a central register of debt obligations Establish a Credit Regulator and Tribunal for effective enforcement Objectives of the Bill

Abil is supportive to the policy objectives of the Bill and has engaged extensively with the dti. The group’s objectives for engaging were to:- Use collective experience to ensure that the provisions in the final Bill were informed by everyday business practices/experiences. Work closely and cooperatively with government Ensure that Abil’s business will be able to continue and prosper under the new legislative regime

To a significant extent we achieved these objectives… The dti’s attitude was generally positive towards consultations and it provided access through a variety of forums. One-on-One consultations Participated as part of focus groups Participated as part of industry

Institutional framework for ADR mechanisms Reckless lending provisions Structure of the rate caps Examples of areas where we had great concerns