At the end of September 2013, after months of debate and
consultation, Cabinet announced its approval of the "credit
information amnesty" proposals as put forth by the select
committee on trade and international relations. Government has
embraced these recommendations as a way to assist consumers in
accessing credit where they can afford it, but are unable to obtain
access due to past adverse information.
Since 2006, South African household spending has consistently
outstripped domestic income – the difference primarily being
funded by credit. This has resulted in a situation where 6 200
South Africans are applying for debt counselling each month and,
according to the National Credit Regulator, one in two
credit-active South Africans have impaired records, a measure
indicating the state of having an account in arrears for a period
of at least 3 months.
