Parliament will deliberate the amendment of the Magistrate's Court Act of 1944, which will protect consumers from predatory wage deductions (garnishing orders).
Currently, there are no limitations to the amount that can be withdrawn from an account. In the amendment, which will be presented before the Portfolio Committee in Parliament, amounts of no more than 25% of total income may be withdrawn for garnishes.
702's Azania Mosaka spoke to Credit Ombudsman, Nicky Lala-Mohan, regarding what the amended legislation means for consumers.
The amendments are expected to be one of the priority items on Parliament's agenda once recess ens after the 2016 local government elections.
Listen to the interview below:
There's going to be more oversight before garnishings are ordered. They will have to check if the garnishing is legal or fair.— Nicky Lala-Mohan, Credit Ombudsman
Consumers should contact the Credit Ombudsman by sending an SMS to 44786 or calling 0861662837 for assistance.