Parliament, Friday, 18 August 2017 – Parliament’s Portfolio Committee on Trade and Industry today resolved to propose to National Treasury that it broaden the scope of its investigation into indebtedness, which will inform the proposed Committee Bill on Debt Relief.

Committee Chairperson Ms Joanmariae Fubbs said this follows the report and proposal by the sub-Committee on the matter. Prior to this, the Committee received a proposed terms of reference from the National Treasury for the research termed “Understanding heavily indebted consumers in South Africa – updated study taking into account the impact of implemented and proposed policy interventions”.

The revised proposal tabled by the sub-Committee includes further proposals from MPs, which will fill the gaps identified in the initial proposal.

The research will address the following questions:

What is the demographic profile of consumers who use unsecured credit (including credit cards, store cards, credit cards) for specified income cohorts?

What is the financial profile of consumers using unsecured credit for specified income cohorts?

What does a dynamic financial profile of unsecured borrowers tell us about how or why consumers access unsecured loans?

What is the pattern of repayment for consumers with secured credit?

Understanding lender behaviour.

The Chairperson of the sub-Committee, Mr Adrian Williams, emphasised that the research will not slow the work of the sub-Committee, which continues while the National Treasury conducts the research.

According to Ms Fubbs, the adopted proposals will now be sent to the National Treasury for it to undertake research as the first phase of the project. Other matters will be undertaken in the second phase.  

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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