Representatives of well-respected debt collection company Credit Intel are often asked to speak at national conferences to impart their knowledge of debt collection techniques, sales of services to clients, the impacts of national legislation on both debt collection and the granting of credit, and credit policy in general.

Credit Intel was invited to speak at the Trade Conference 2014 and was capably represented by Senior Legal Executive Michael Shackleton, who is also an admitted attorney and an expert on the National Credit Act and the amendment thereto.

Shackleton duly spoke on the proposed amendment and indicated his disagreement to the credit amnesty; citing other solutions such as the automatic and costless removal of a default judgment once a debtor has made full and final payment, as preferable.

The representative of Credit Intel also indicated how the proposed ban on the collection and sale of prescribed debt will require debt collection and retail companies to close numerous accounts and take a serious profit knock.

The Conference was attended predominantly by representatives of major South Africans, including  Standard Bank, ABSA, Nedbank and CitiBank.

Credit Intel Legal Executive Michael Shackleton summed up the impacts that will be felt by the credit industry when the National Credit Amendment Bill is passed.

Shackleton believes that the proper implementation of the National Credit Act is still the best way of striking a fair balance between protecting legitimate credit providers as well as lenders and debtors who are preyed on by unsavoury operators.

Also suspiciously missing from the amendment is any proposal regarding emolument attachment orders. In the build up to the drafting of the bill, so-called “EAOs” were seen as a threat to consumers and extensive research was done thereon.

The Minister of Trade and Industry, Rob Davies, has portrayed the Amendment Bill as largely consumer-focused. The absence of reference to EAOs therefore raises several questions, such as whether a further amendment will be proposed in future.

The passing of the Bill will also result in the need for credit providers to fulfill greater administrative requirements at a time when regulations should be relaxed in order to spur job creation. These greater bureaucratic requirements will place an even greater burden on small businesses at a time where unemployment is high and economic growth is relatively static. Issued by: Michael Shackleton LLB

Link: www.creditintel.co.za/news.htm