The Reserve bank says that unsecured loans in South African has risen by over 20% in the year to June (SABC)
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Analysts are calling for a review of the National Consumer Protection Act and the National Credit Act in the wake of increases in unsecured lending.
Credit Ombudsman, Manie Van Schalkwyk says when an Act is written, it is an intention that the Act will be implemented, however, "over a period of time one realises that there are intended consequences or the wording did not work." She says that the Act needs to be re-visited and it is time to see what has worked as opposed to what did not. The analysts have been speaking at the 2012 Indebtedness Summit in Midrand. They have warned consumers about the number and amount of unsecured loans being granted by moneylenders. The Reserve Bank says unsecured loans in South Africa surged by 21% to R381 billion in the year to June. The experts believe there are too many gaps in the current Consumer Protection Laws and that a serious policy review of the Act is needed.
