SA’s new debt-relief law will ratchet up the cost of credit, strangling consumer spending with a devastating effect on an ailing economy, a banking lobby group said.
The comments by the Banking Association SA on Friday came a day after President Cyril Ramaphosa signed into law a bill that gives the National Credit Regulator powers to write off unsecured loans — which do not need collateral — worth R50,000 for consumers found to be critically indebted and earning no more than R7,500 a month.
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