Consumers don't need proof of income to apply for a loan

Clothing retailer giants Truworths, Foschini and Mr Price took the Minister of Trade and Industry to court to set aside the current requirement in the National Credit Act (NCA) that credit applicants need to produce three months' payslips or bank statements as proof of income and they won.

Speaking to Azania Mosaka, General Counsel (Legal) at TransUnion, Jeannine Naude-Viljoen, said one would recall that the NCA was amended a few years ago and those amendments imposed stricter affordability criteria for lenders to apply.

READ: Retailers no longer need documents proving income when shoppers apply for credit

This was essentially to prevent reckless affordability practices and also to force lenders to make accurate affordability assessments.

Jeannine Naude-Viljoen, General Counsel (Legal) at TransUnion

She adds that the repercussions to the act amendments is that some consumers found themselves excluded from obtaining credit.

Naude-Viljoen said one of the reasons why these retailers fought this matter is that they are exposed to a number of consumers who apply for store cards or smaller loans.

And those are typically people that are entrepreneurs or people that are informally employed that are able to service a loan but don't necessarily have those supporting documentations to prove their income.

Jeannine Naude-Viljoen, General Counsel (Legal) at TransUnion

Listen to Naude-Viljoen explain more on credit applications...


Recommended

by NEWSROOM AI
Read More
Credit regulator still wants retailers to ask for payslips

Credit regulator still wants retailers to ask for payslips

The National Credit Regulator says retailers must decide how they'll verify income when offering store credit to informal workers.

Motorists, brace yourselves. The cost of fuel is jumping by 49 cents a litre

Motorists, brace yourselves. The cost of fuel is jumping by 49 cents a litre

Consumers are feeling the pinch with the recent VAT increase and fuel price hike, says economist Xhanti Payi.

Sabric Report: Credit card fraud has risen by 1%

Sabric Report: Credit card fraud has risen by 1%

Sabric CEO Kalyani Pillay says the theft of personal and confidential information is on the increase.

Car deal extras - what they can and can’t add to your finance contract

Car deal extras - what they can and can’t add to your finance contract

ConsumerTalk's Wendy Knowler lists what charges are allowed to be added...and what may not.

Why you can't tip petrol attendants with a card

Why you can't tip petrol attendants with a card

SA Fuel Retailers Association CEO Reggie Sibiya explains motorists may not tip petrol attendants using debit or credit cards.

Coffee capsule supplier Caffeluxe fined R750 000 for price fixing

Coffee capsule supplier Caffeluxe fined R750 000 for price fixing

Secret River Trading (trading as Caffeluxe) has admitted to fixing the prices of coffee capsules for retail customers.

Applying for store credit? You can ditch the payslips and paperwork from now on

Applying for store credit? You can ditch the payslips and paperwork from now on

Consumer journalist Wendy Knowler explains how a new court ruling will impact consumers applying for credit in South Africa.

Retailers no longer need documents proving income when shoppers apply for credit

Retailers no longer need documents proving income when shoppers apply for credit

The Money Show’s Bruce Whitfield interviews Norton Rose Fulbright Director in Litigation Lauren Fine.

10 most-read 'money' articles of the past week

10 most-read 'money' articles of the past week

If this is the only business content you consume all week; you’re all right.

Listeriosis: Consumer law allows lawsuit against anyone in supply chain - expert

Listeriosis: Consumer law allows lawsuit against anyone in supply chain - expert

Personal injury lawyer Kirstie Haslam and consumer journalist Wendy Knowler explain the legal recourse available for consumers.

Cooking or heating meat products kills listeria bacteria - food safety expert

Cooking or heating meat products kills listeria bacteria - food safety expert

Many retailers are removing ready-to-eat-meat products from their shelves and have encouraged customers to return processed meats.

Load shedding - what you need to do

Load shedding - what you need to do

We explain what it is, who does it and why and how you know when you will be affected.

Popular articles
[WATCH] April Fools joke scaring rubbish collectors has social media in stitches

[WATCH] April Fools joke scaring rubbish collectors has social media in stitches

Khabazela shares some of the videos that went viral on Twitter and Facebook.

[WATCH] Hello from the inside, dad singing an Adele parody goes viral

[WATCH] Hello from the inside, dad singing an Adele parody goes viral

Khabazela shares some of the videos that went viral on Twitter and Facebook.

'Public should only test for COVID-19 with approved labs and not self test'

'Public should only test for COVID-19 with approved labs and not self test'

WHO Solidarity Trial South African arm's professor Helen Rees gives an assessment on how the country is dealing with the virus.

Beitbridge Border Post repairs almost complete - Minister Patricia de Lille

Beitbridge Border Post repairs almost complete - Minister Patricia de Lille

Department of Public Works and Infrastructure minister says the contractor has fixed 80% of the fence.

No traffic and everyone’s at home… Some short-term insurers offer lower premiums

No traffic and everyone’s at home… Some short-term insurers offer lower premiums

Short-term insurers suddenly carry a massively reduced risk burden, says consumer journalist Wendy Knowler. Getting some back?

A tipping point for video conferencing

A tipping point for video conferencing

A business tool for older generations, a staple for younger ones

Total number of positive coronavirus cases rises to 1,380

Total number of positive coronavirus cases rises to 1,380

This is an increase of 27 cases from Tuesday's announcement. Health Minister Zweli Mkhize has tested negative for the virus.

What is an 'economic depression'? Are we heading for one? Lessons from history…

What is an 'economic depression'? Are we heading for one? Lessons from history…

The Great Depression started 91 years ago and changed everything. Bruce Whitfield speaks to economic historian Keith Breckenridge.

Sars collects R1.4tr in taxes – up 5.3% on a year before, despite the recession

Sars collects R1.4tr in taxes – up 5.3% on a year before, despite the recession

Despite the achievement, the country still lost R100 billion in uncollected taxes, says Commissioner Edward Kieswetter.

Struggling to pay a debt? Your options: credit insurance vs debt relief holiday

Struggling to pay a debt? Your options: credit insurance vs debt relief holiday

Personal Finance expert Maya Fischer-French on the pros/cons of dipping into credit insurance vs opting for a debt relief holiday.