Committee adopts Credit Amendment Bill
The Portfolio Committee on Trade and Industry today adopted the contentious National Credit Amendment Bill, which provides, among other things, for the automatic removal of adverse consumer credit information.
Committee Chairperson Ms Joanmariae Fubbs said this issue was especially important because consumers with adverse credit records had been negatively affected when trying to gain employment, even after their accounts had been settled.
According to the Bill, the credit provider must submit information regarding the settlement by a consumer of any obligation under a credit agreement to all registered credit bureaus within seven days of settlement. The credit bureau then has a further seven day to remove any adverse listing. This includes information on classifications such as “delinquent, default, slow paying, absconded or not contactable”.
Committee member Mr Graham McIntosh objected to the removal of adverse information from consumers’ credit records. He was concerned that this practice would detract from the quality of consumer credit record keeping, which had gained South Africa international respect. “If consumers manage to pay, it should be recorded positively, but don’t remove it completely from the records,” he said.
The Deputy Director-General in the Department of Trade and Industry, Ms Zodwa Ntuli, assured the Committee that although the credit information would be removed, the payment profile of consumers would still remain. “There were concerns initially when people thought it would be a blanket removal,” he said.
Committee member Mr Gaolaolwe Selau asked for clarity on how long it would take for the information to be removed from the record. Ms Fubbs indicated that the total of 14 days was to ensure that all the parties had enough time to follow the correct processes. She further said that the retention of the personal payment profile would provide a balance. The Bill is scheduled to be debated in the National Assembly on Tuesday, 25 February 2014.
