Bill could save over-indebted South Africans

For more on this, we're joined by Norton Rose Fulbright Attorney's Riccardo Petersen. Courtesy #Dstv403

JOHANNESBURG - Some over-indebted South Africans could have their debt written off soon.

The National Credit Amendment Bill aims to provide relief to low-income earners, by erasing part or all of their debt.

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" A specific group of low-income consumers are suffering and cannot simply get out of their dire financial constraints and the issues they face with finances.

The idea was to try to get a bill in place that will alleviate this financial pressure on these consumers", said Riccardo Petersen, from Norton Rose Fulbright Attorneys.

The bill’s been sent to President Cyril Ramaphosa to be signed into law.

"What the bill has done is to look at consumers who apply for debt intervention where the consumer must truthfully and intentionally give correct information to the regulator when they apply for debt intervention.

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They must not alter their financial position in order to qualify for debt is an offence and they will suffer the consequence of imprisonment for two years", Petersen added.