South Africa To Pardon Highly Indebted Individuals With The New Debt Write-Off Bill - Faith Ngwenya

Business Today in Africa

Africa Business Radio — Ms. Faith Ngwenya of the South African Institute of Professional Accountants (SAIPA) engages us on the Debt Write-Off Bill that is presently before parliament. She unpacks its contents and what is under discussion. SA Plans To Offer Debt Pardon To Individual With The New Debt Write-Off Bill In The Parliament. The South African Institute of Professional Accountants was one of many entities that made submissions on the draft National Credit Amendment Bill. The debt-intervention powers that are being proposed set out a process that credit providers and credit bureaus must follow when they are lending money and the institute’s submission highlighted certain aspects of the proposal that require further consideration and discussion. Some in the profession are wondering if the intervention is needed at all. Treasury is supporting the proposal that the unsecured debt of particular over-indebted individuals is extinguished completely as a once-off intervention. The group of people who would be eligible for this are individuals with gross monthly income of not more than R7,500, who have no readily realizable assets (excluding exempted items), are not subject to debt review and have unsecured debt that is less than R50,000. For a long time, South Africans have been warned about the out-of-control debt of our citizens. A lot of this responsibility has fairly been pushed back to credit providers, who in the past have allowed consumers to use up to 70% and 80% of their monthly income to repay debt. This practice is reckless and immoral, which is why the National Credit Act has been established. Last year, a draft bill giving the National Consumer Tribunal the power to extinguish debt in certain circumstances was published for public comment by Parliament’s Trade and Industry committee, which formulated it. The South African Institute of Professional Accountants was one of many entities that made submissions on the draft National Credit Amendment Bill. Africa Business Radio