The Department is not mandated to deal with financial matters such as lending. However, the Department places its reliance in this regard on existing and enabling legislation such as the National Credit Act (35 of 2005) (NCA).
The NCA is designed to protect the Consumer in the credit market and make credit and banking services more accessible. The NCA aims “to promote and advance the social and economic welfare of South Africans, promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market and industry, and to protect Consumers.”
The Purpose of the NCA is to: promote a fair and non-discriminatory market place for access to Consumer credit; regulate Consumer credit and improve standards of Consumer information; prohibit certain unfair credit and credit marketing practices; promote responsible credit granting and use; prohibit reckless credit granting; provide for debt re-organization in case of over-indebtedness; to regulate credit information; and establish recourse for unfair credit practices.
The Department is empathetic to the plight of taxi operators in respect of the vehicle instalments. However, there is reprieve in acknowledging that the agreement entered into between the operator and the financial institution is governed by the NCA.
The Department has with confidence placed its reliance on the NCA to protect taxi operators and believe that the recourse provided herein has assisted may operators who chose to comply when applying for finance and sought the necessary assistance when circumstances were adversely affected.