National Credit Act: Concerns proposed changes could blacklist indebted students

JOHANNESBURG - Concerns have been raised over the proposed amendment to the National Credit Act, which could potentially see people with student debt blacklisted. 

The Department of Trade, Industry and Competition recently gazetted for public comment a number of draft amendments to the National Credit Act of 2005. 

It says the amendments aim to strengthen consumer protections, how credit bureaus handle customer information, and conduct affordability assessments. 

One of the proposed amendments to the National Credit Act pertains to how a credit bureau may obtain a person’s credit information. 

The amendment now adds educational institutions to the existing number of sources, which include banks, court judgments and debt collectors. 

Economic Freedom Fighters youth leader and Member of Parliament, Sihle Lonzi said this discriminates against poor students who cannot afford to pay off their debts and already have their qualifications withheld by universities as a result. 

"The Department of Trade and Industry then says on top of not giving you your qualification, we are now going to blacklist you. We are going to make it impossible for you to pursue financial essential loans in the future."

Public comments on the amendments close on 12 September.