Pre-agreement assessment as a responsible lending tool in South Africa, the EU and Belgium: Part 2

Abstract

Responsible lending has become a very pertinent issue on the agenda of credit regulators across the globe who seek to combat the causes of consumer over-indebtedness. In this context the use of "pre-agreement assessment" as a tool to filter out those instances where, based on a consumer's creditworthiness or ability to repay, credit should not be granted to such a consumer, is a feature common to the lending regimes of various jurisdictions. This contribution consists of two parts: Part 1 provides a critical discussion of the reckless credit provisions of the National Credit Act 34 of 2005. Part 2 details the responsible lending measures contained in the EU Consumer Credit Directive and the EU Mortgage Credit Directive and provides an appraisal of the responsible lending measures introduced by Belgium, being a jurisdiction that has always been very pro-active in the context of consumer credit protection.

Protection Against Over-Indebtedness: Appraising Suitability and Affordability Assessment in Malaysia and South Africa

“…The South African National Credit Regulator has been entrusted with the responsibility of overseeing the implementation of the National Credit Act 2005 (NCA) (CM van Heerden & Steennot, 2018). This legislation is designed to foster a fair and non-discriminatory environment in the credit industry, ensuring that consumers have equitable access (Mnxuma, 2022).…”