The Marketing of Consumer and Mortgage Credit as a Responsible Lending Tool: A Comparison of South African, European and Belgian Law: Part 2

Abstract

The vulnerability of prospective credit consumers to over-committing their resources and the inherent dangers posed by credit advertising in particular necessitate the proper regulation of credit marketing. It is therefore not unsurprising that responsible marketing forms part of the responsible lending (and borrowing) measures of various jurisdictions – including South Africa and the Member States of the European Union – with the aim of preventing the extension of credit to consumers who cannot afford it. In this article the credit marketing laws that the South African, European (mainly in the Consumer Credit and Mortgage Credit Directives) and Belgian legislators have enacted are considered and compared, with a focus on the information to be included in advertising, prohibited advertising and prohibited marketing techniques. The ultimate aim is to determine whether South African law contains sufficient guarantees to protect consumers with respect to credit marketing and its consequences.
 

Tasa de interés de los créditos de consumo y recaudación del impuesto general a las ventas en Perú

“…Similarly, these results indicate that banks may be acting to the detriment of consumer interests, suggesting that voluntary self-regulation in Peru might not be sufficient to ensure fair practices. Therefore, regulatory intervention is necessary to protect consumers, aligning with the perspective put forward by Renke and Steennot (2020b), who suggest that self-regulation alone is rarely sufficient.…”

“…Additionally, Batu Tunay et al (2020) show that the financial structures of banks need to be supervised and strengthened. Renke and Steennot (2020b) suggest that self-regulation alone, being voluntary, is rarely sufficient. Similarly, Nugroho et al (2022) point out that regulators should compel banks to reduce their rates, and Goldenberg Serrano (2020) considers implementing regulations to mitigate active overindebtedness.…”