THE NATIONAL COUNCIL OF PROVINCES
QUESTION FOR WRITTEN REPLY
Ms N D Ntwanambi (ANC-WC) to ask the Minister of Trade and Industry:
(1) Whether the Government and/or any of its entities has undertaken an
assessment regarding negative economic impact on persons who have
adverse credit records or default judgements (details furnished); if
not, what is the position in this regard; if so, (a) what initiatives
have been taken to assist persons who find themselves in similar
situations and (b) what are the further relevant details;
(2) whether the Government will consider engaging credit bureaus to offer
grace periods for debt arrangements for personsâ names to be removed
from credit records; if not, why not; if so, what are the relevant
1) The NCR does conduct household surveys on indebtedness. In 2009 they
conducted a survey to establish the issues related to consumers who
were over-indebted, through the Bureau of Market Research of UNISA.
A similar project is underway this financial year and the results will
be available in March 2012. In addition to these surveys, the NCR
tracks the credit standing of consumers on a quarterly basis from
information provided by the registered credit bureaus. A summary of
this information is published in the Credit Bureau Monitor which can
be accessed on the NCR website.
(1)(a)-(b) The NCR has various education and awareness programmes and
engages with service providers in relation to various options of debt
restructuring, debt counselling, consumer advice and support.
2) Minister granted an amnesty in 2006 and 2007 (published under GN R1209
in GG 29442 of 30 November 2006) for information held by credit
bureaus. The amnesty covered non payments limited to specified values
as well as judgments. Consumers benefited from this process as most
were released from incurring costs to rescind judgments and the re-
establishment of their credit standing. However not all payment
information was covered through this amnesty process, therefore some
consumers continue to face challenges in accessing credit.