Credit Intel Speaker Michael Shackleton summed up the impacts that will be felt by the credit industry when the National Credit Amendment Bill is passed at the recent Loan Origination and Credit Granting Conference, held in Sunninghill. Major players in the credit industry, representing law firms, the National Credit Regulator and Consumer Profile Bureau just to name a few, were present.

The negative impact of the banning on the prescription on the industry will be sorely felt and will result into thousands of job losses and company closures when the Bill is passed. The credit amnesty will also give credit providers less information to go on when conducting an affordability assessment and may lead to increased reckless credit lending taking place.

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 consumers who are preyed on by unsavoury operators. 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.

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