# Regulatory Compliance Category > National Credit Act Forum >  The big credit giveaway hots up to beat the June 1 deadline

## Dave A

South Africa's credit providers are racing to sign up clients before a new law makes it illegal for them to extend credit to consumers deemed unlikely to pay back the money.

Lenders are resorting to mailing credit cards to prospective clients and offering them pre-approved loans in text messages and high-pressure phone calls ahead of the June 1 introduction of the National Credit Act.

"While the law will not limit these offers of credit, it will put the onus on them to disclose all the information about the total cost of credit and the interest rates," Gabriel Davel, head of the government's credit regulatory body, said.

Lenders could find their credit contracts declared void if they do not inform a consumer about all the charges and interest rates attached to loans.
full story from M&G here

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## stephanfx

What exactly are these places trying to achieve in lending people money that they now those people will be unable to repay. 

Are they willing to crook people into taking R5000.00 worth of credit and then taking the person(s) home or car or whatever that person holds dear for that same measly R5000.00.

I for one am glad that this new law is coming into effect!

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## Debbiedle

There was a Carte Blanche programme some 2 years ago where this is exactly what happened Stephan.....from the lender to the lawyer were all involved and they ended up extorting property, hundreds of thousands of rands and generally the life blood from the poor and uneducated.  

I felt sick for days after watching that programme! :Mad:

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## stephanfx

Now my question is this: If they knew about this 2 years ago, why only now bring in this law? 

They saw what happened then, and are only now trying to do something about this. What happened?

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## RKS Computer Solutions

Goverment happened....

If the president can complain about high telecoms prices and a company like Telkom can use the presidents notes for his speech for toilet paper, what makes you think goverment is doing a half decent job at getting their message through...  All talk and no play...

Telecoms is not the only sector affected by half-witted officials who talk the talk but can't get their bearing straight in walking the walk...  This is a classic example

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## stephanfx

So it is the government again... 

Luckily someone woke up and started to introduce this new law. It is just so sickening to think that only when we are about to hit the floor that our government is actually up to doing something about it. 

This is not the right way to manage a country, (disaster management), but in the end you probably get what you put in.

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## duncan drennan

> Now my question is this: If they knew about this 2 years ago, why only now bring in this law? 
> 
> They saw what happened then, and are only now trying to do something about this. What happened?


I think that passing a law like takes a lot of time and a lot of consultation with industry. To just pass a law willy-nilly would have had a huge impact on many people (who it is not intended to effect). It appears than even as the law stands now, there is a big potential that it could be used against anyone granting credit to get out of paying (if certain procedures are not followed).

There are some things (such as incidental credit) which are not totally clear (or rather, I'm not totally clear on them) which could have an impact on your business.

The government should play a role in protecting innocent people from getting hurt, but regulating too many things hands a lot of power over to the state. Too much power in the hands of the state makes me uncomfortable.

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## Dave A

The NCA was enacted a year ago. It's just that some of the provisions are only kicking in now.



> The government should play a role in protecting innocent people from getting hurt, but regulating too many things hands a lot of power over to the state. Too much power in the hands of the state makes me uncomfortable.


Amen to that.

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## RKS Computer Solutions

> The government should play a role in protecting innocent people from getting hurt, but regulating too many things hands a lot of power over to the state. Too much power in the hands of the state makes me uncomfortable.


Amen to Dave's Amen...  But, Goverment is more concerned about their bottom line and how deep their pockets go...   Want proof?  How long has the Neotel applications been with ICASA, how many times have Pres. Mbeki complained about high communications costs, and how many times have it been water off of a non-caring ducks back?

Goverment doesn't care, because their share in Hellkom is filling their pockets nicely, and as long as they keep Neotel out of it (Allthough they also have shares with them), the more money will fill their coffers because Telkom is still raping this country and it's people...

Off-topic:  Why do you think goverment wants their share of the pie from every single communications avenue?  Why is their reasoning for having a share of every one of these companies to be able to broadcast in times of emergency?  Do you really think 5FM/SABC or whoever is going to tell the goverment to pay them first when they want to announce an emergency to the country because Koeberg has melted down and everyone should be running for their lives?  Hell no, the only reason behind it all is monetary, and that is the reason why policy in this country is what it is, filling up their coffers and keeping the public moans in the background until it's almost too late...

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## Dave A

I see they're currently manipulating the Eskom communications backbone that is going to be what will make Neotel work into a stand-alone company - owned by? 


SA Government. 100%

Privatise - nationalise - privatise - nationalise.

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