Have courts made it easier for people to become overindebted

Last week, the Western canada goose outlet store uk Cape High Court issued a judgment setting aside certain sections of the National Credit Act.

It argued that they are and unfairly discriminate against the section of the canada goose outlet canada goose store canada population that largely consists of Canada Goose Coats On Sale the poorer and less privileged members of society the heart of this court canada goose outlet uk sale case is that under section 23A(4) of the act, a customer has to provide uk canada goose outlet either proof of income or a canada goose clearance canada goose outlet jackets bank statement to qualify for a loan.

Therefore, this flower seller parent, who may need to canada goose outlet Canada Goose sale online buy school uniforms for his or her child in January, canada goose factory outlet but could not pay the full amount in one go, would not get access to canada goose outlet short term credit due to the requirements.

Have your say.

While the canada goose coats on sale judge argued that current affordability requirements hamper access to credit for non banked individuals, the reality is that, in South Africa, debt levels are so high that Parliament has canada goose jacket outlet held hearings to try and find ways goose outlet canada to canada goose uk outlet deal with the problem, especially in low income households.

The canada goose factory sale SA Canada Goose Outlet Consumer Credit Index, compiled by TransUnion, shows that consumer credit health has increased since the amendments to the canada goose black friday sale act were introduced in 2015, suggesting that they buy canada goose jacket cheap have been successful in curbing credit extension.

is not a step in the right direction when it comes canada goose outlet black friday to managing unsustainable credit growth, argued Benay Sager, chief operating officer of the IDM Group, which owns a debt counselling business.

Sager was concerned that the argument around credit access was focused on retail accounts and not asset creation, when canada goose outlet new york city the average individual in debt review had canada goose coats over two retail accounts.

The court case would have been better argued had it been brought by credit providers offering cheap Canada Goose developmental loans for microbusinesses, or for education, rather than by retailers concerned about the lack of new clothing accounts, he said.

A study by the FinMark Trust found that the buy canada goose jacket easier the access to credit, the less it was used canada goose outlet online uk for developmental canada goose outlet reviews loans canada goose outlet toronto factory and the more for consumption.

So should we not canada goose uk black friday rather be canada goose outlet uk focusing on canada goose clearance sale providing savings products or mechanisms allowing individuals to plan ahead and save for clothes and shoes without having to incur interest and loan fees they can ill afford?

The judge argued that the current canada goose outlet parka act has the potential to prevent any credit cheap canada goose uk being granted to those who have historically been unable to access it.

This is against a canada goose section of the population that represents the less privileged and falls foul of the Promotion of canada goose black friday sale Equality and Prevention of Unfair Discrimination Act.

It would be a mistake, however, to interpret this judgment as an invitation to open credit lines or lessen affordability checks.

In his ruling, the judge objected to the consultation process about canada goose outlet nyc the amendments and the rigid requirements of canada goose uk shop having to produce a bank statement and pay slip.

Yet, he canada goose outlet sale went to lengths to state that retailers are still obliged to assess affordability.

While www.gofind.ca the judge argued that the minister should have used a more flexible approach Canada Goose Online to allow for similar credible information rather than a rigid set of requirements which Canada Goose online excludes non banked official canada goose outlet customers, he made canadian goose jacket canada goose outlet in usa it clear canada goose outlet store that credit providers must official canada goose outlet use accurate information to determine affordability.

They cannot rely solely on information provided by the consumer.

may be that the consumer makes a mistake, or it may be that the consumer, anxious to qualify for a loan or other credit, gives deliberately uk canada goose false information. judge argued that Canada Goose Parka regulations should require assessments carried out by the credit provider based on accurate information, but that the information does not have to be a bank statement or pay slip.

TransUnion Africa CEO Lee Naik argues that the judgment does not mean more, credit, but in fact increases the obligation on lenders to ensure they do even more vigorous affordability assessments based on different sets of data.

The credit bureau recently launched CreditVision, which canada goose outlet shop uses data analysis of customer behaviour to assess consumers creditworthiness and their propensity to pay off their loans.

Since its launch at the beginning of February, TransUnion has Canada Goose Jackets already identified 3 million new consumers who, although not part of the formal economy, would qualify for access to financial products such as cellphone contracts, insurance and loans.