Parliament, Tuesday, 3 October 2017 – Parliament’s Portfolio Committee on Trade and Industry today had an engagement on the draft framework of the Committee Bill on Debt Relief.

The Committee received a briefing from the Parliamentary Legal Advisor, Adv. Charmaine van der Merwe, on the possibilities of what could be provided for in the proposed legislation. The framework proposed a once-off debt relief measure as well as measures that the Minister could prescribe. It sets out the criteria, application process, and consequences of debt relief provided. Debt relief could include capping of interest and other charges, suspension of credit agreements, or where there is insufficient prospect that the consumer may improve his or her financial circumstances over the next 12 months to such an extent that he or she can repay the debt, the extinguishing of that debt. The persons and credit agreements to which these measure will apply, will however, be specifically defined in the Bill.

It is currently proposed that such once-off applications could be made to the National Credit Regulator (NCR), who may among other things, refer it for debt review if the NCR is of the view that debt relief would be a more suitable measure.

The Committee heard that when the consumer submitted the once-off debt relief application, the consumer may not incur any further charges under a credit facility or enter into any further credit agreement until the process is finalised. Furthermore, the credit provider may not exercise or enforce by litigation or other judicial process any right or security under that credit agreement. The National Consumer Tribunal may amend or rescind the once-off debt relief if, for example, the consumer’s financial circumstances change or if the consumer was dishonest in the application.  Committee Chairperson, Ms Joanmariae Fubbs, said the Committee will tomorrow commence deliberations on the Bill.

ISSUED BY PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TRADE AND INDUSTRY, MS JOANMARIAE FUBBS

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