Credit regulator still wants retailers to ask for payslips

The National Credit Regulator (NCR) has urged credit providers to continue asking for pay slips or bank statements of formally employed consumers to finalise affordability assessments.

Read: Applying for store credit? You can ditch the payslips and paperwork from now on

The NCR published draft guidelines in response to a court ruling in March that consumers did not have to produce proof of income to access credit.

Lesiba Mashaba, the NCR company secretary, says the regulator chose not to appeal but instead published draft regulations to address the deficiencies of the judgment.

Mashaba says that guidelines are needed to determine a consumers gross income and discretionary income.

He explains that credit providers will still need to somehow calculate the gross income the consumer to determine a consumer's living expenses.

Read more: Retailers no longer need documents proving income when shoppers apply for credit

The NCR wants credit providers to submit their assessment models for those who do not work in the formal sector.

Mashaba says some parts of the regulations have become impractical to implement following the judgment.

The problem with this judgment is that it removed the requirements for consumers that were formally employed and can produce the payslips and bank statements.

Lesiba Mashaba, NCR company secretary

The other problem is that parts of the regulations require credit providers to calculate consumers discretionary income.

Lesiba Mashaba, NCR company secretary

What we have done on the guideline is to be flexible for consumers who are in the informal sector of the economy. We leave it up to credit providers to decide how they will verify income and make that assessment.

Lesiba Mashaba, NCR company secretary

Take a listen to him explain:


This article first appeared on CapeTalk : Credit regulator still wants retailers to ask for payslips


Recommended

by NEWSROOM AI
Read More
[LISTEN] SA's Ndlovu Youth Choir through to America's Got Talent semi-finals

[LISTEN] SA's Ndlovu Youth Choir through to America's Got Talent semi-finals

The choir has been wowing TV audiences in the US and across the world with their energetic performances.

Surfer comes up with insp-EYE-ring way to ward off sharks - take a look!

Surfer comes up with insp-EYE-ring way to ward off sharks - take a look!

Large eye stickers are being stuck to the bottom of surfboards in order to deter sharks.

Why you can't tip petrol attendants with a card

Why you can't tip petrol attendants with a card

SA Fuel Retailers Association CEO Reggie Sibiya explains motorists may not tip petrol attendants using debit or credit cards.

Applying for store credit? You can ditch the payslips and paperwork from now on

Applying for store credit? You can ditch the payslips and paperwork from now on

Consumer journalist Wendy Knowler explains how a new court ruling will impact consumers applying for credit in South Africa.

Retailers no longer need documents proving income when shoppers apply for credit

Retailers no longer need documents proving income when shoppers apply for credit

The Money Show’s Bruce Whitfield interviews Norton Rose Fulbright Director in Litigation Lauren Fine.

Spike in complaints over shady debit orders - banking ombud

Spike in complaints over shady debit orders - banking ombud

The banking ombud has encouraged consumers to check their bank statements and make sure they understand all their transactions.

Popular articles
[WATCH] Here's the purported ANC letter Maimane revealed during Ramaphosa's Q&A

[WATCH] Here's the purported ANC letter Maimane revealed during Ramaphosa's Q&A

The 2014 letter on an ANC letterhead signed by then TG Zweli Mkhize thanks Bosasa's Gavin Watson for a 3 million party donation.

[WATCH] Man records every treadmill run over 8 months... and shows weight loss

[WATCH] Man records every treadmill run over 8 months... and shows weight loss

Khabazela shares tweets and Facebook posts that have gone viral.

Standard Bank says comedy of errors with bond applicant 'a once off'

Standard Bank says comedy of errors with bond applicant 'a once off'

Only when consumer journalist Wendy Knowler chased Standard Bank did they admit wrongdoing that cost a client R41 000.

Autopsy report confirms Selahle died of unnatural causes in police custody

Autopsy report confirms Selahle died of unnatural causes in police custody

Tshegofatso Selahle died on Sunday after being arrested by JMPD officers for allegedly skipping a robot in Johannesburg.

SA’s richest woman opens up about being a refugee and becoming a billionaire

SA’s richest woman opens up about being a refugee and becoming a billionaire

Magda Wierzycka – Sygnia’s renegade CEO – on her attitude toward money (hopes and fears, successes and failures, etc.).

Former EFF MP: 'I didn't know where the money came from until it was leaked'

Former EFF MP: 'I didn't know where the money came from until it was leaked'

EFF member Tebogo Mokwele and Small Business Development Minister Khumbudzo Ntshavheni respond to leaked CR17 bank statements.

[WATCH] Father and daughter dance-off changes tune when she starts twerking

[WATCH] Father and daughter dance-off changes tune when she starts twerking

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] Is it a cow's penis or an udder? Well, this kid thinks it's a penis

[WATCH] Is it a cow's penis or an udder? Well, this kid thinks it's a penis

Check out the videos, tweets, Facebook posts that have gone viral and why this kid cheered her dad on in the toilet.