A proposed Credit Amnesty was announce on 13 February by the South African Department of Trade.
It is said that the previous Credit Amnesty in 2006 which provided a once-off removal of some negative credit information for consumers did not work, as subsequent approved credit applications only grew by 3.2%.
Due to the failure of the previous Credit Amnesty the Department of Trade is attempting to correct that.
A Credit Amnesty that could affect about two million blacklisted South Africans was proposed by the Department of Trade
This credit amnesty may sound misleading, as it would not remove the debt itself but the negative information relating to the debt.
The deputy director of the Department of Trade, Zodwa Ntuli said that research showed that around two million people could benefit from the proposed credit amnesty.
Ntuli said the Department of Trade would present a final proposal on how to introduce a new amnesty in March.
This would include: thresholds and the time-frames for people to qualify for an amnesty.
Ntuli also said this proposed amnesty would not affect the National Credit Act.
This Amnesty is hoped to be in place by the end of the year according to official reports.
The National Credit Regulator said the proposed Amnesty had the following aim:
- The amnesty was to give some people who blacklisted a clean slate thereby giving these people access to jobs and housing.
- Provide a new credit opportunity for consumers
- Reduce the cost of credit repair
- Help consumers pay less for credit
- This would not equal the ability for people to have access to credit that they can’t afford and also not the writing off of existing debt.
- This amnesty would consist of the removal of negative credit information under R10 000 which would benefit 86% of people earning less than R15 000.
If you need help with the removal of a judgement or any other blacklisted/credit issues please Contact Us for free advice/assessment.
FORMAL CONSULTATIONS AT THE OFFICE, IN ALBERTON ARE BY APPOINTMENT ONLY
Maricha Brits Attorneys is registered with the Law Society of the Northern Provinces under Practice Number 13532