Credit bill means people might escape repaying their debt, banking group warns

Local banks are concerned that some of their customers will get away with not having to repay their debt.

The bill was opposed by the banking industry, clothing retailers who provide credit and the opposition DA, as it would drive up the cost of loans for low-income earners, restrict lending and encourage bad behaviour by borrowers. The association did an economic impact assessment and engaged the department of trade and industry, which is spearheading the bill, and found that banks will either have to price in higher risks or avoid lending to low-income customers altogether.

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