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National Credit Bill workshop March 2006 Tami Sokutu.

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Presentation on theme: "National Credit Bill workshop March 2006 Tami Sokutu."— Presentation transcript:

1 National Credit Bill workshop March 2006 Tami Sokutu

2 “ 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

3 NCB IS THE CULMINATION OF A CONSIDERABLY LENGTHY PROCESS May 2002 - 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

4 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

5 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

6 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

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


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