Godsell blasts garnishee orders

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The_Unbeliever

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Johannesburg - If he were a mine manager, he would have refused to enforce garnishee orders against miners' wages, chairperson of Business Leadership South Africa Bobby Godsell told Sake24.

"I would have said, sorry Capitec or whoever, I'm not your debt collector - you granted that debt, go and collect it yourself. Take me to court if you want, but I am not going to do it," Godsell said at the Joburg Indaba for the mining industry on Wednesday.

It became clear towards the end of last year that miners' debt levels had skyrocketed in recent years; this had played an enormous role in the unrest that led to the Marikana massacre, and contributed to the excessive wage demands and violence increasingly becoming part of the collective bargaining process.
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Link : http://www.fin24.com/Companies/Mining/Godsell-blasts-garnishee-orders-and-CEO-pay-20131031
 
I have to agree with him though. These lending institutions need to be reined in. Their rules for granting loans are deliberately weak and vague.
These miners cannot afford these loans and should never have been granted them.
I also have to mess around and waste my time with stupid garnishing orders.
In my opinion, it is that company's fault for lending the money in the first place.
They should bear the blame and the collection responsibility.
 
Garyvdh said:
I have to agree with him though. These lending institutions need to be reined in. Their rules for granting loans are deliberately weak and vague.
These miners cannot afford these loans and should never have been granted them.
I also have to mess around and waste my time with stupid garnishing orders.
In my opinion, it is that company's fault for lending the money in the first place.
They should bear the blame and the collection responsibility.
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My point is if the miners actually never striked (no work, no pay) then they would not be in this pickle...

But yeah, your point is also valid, lending money recklessly is also not a good thing.
 
Yes, the banks are giving out loans left right and center, but they are for-profit corporations and that is their business model. At the end of the day, the onus is on the person taking out the loan to ensure they can repay it.
 
Correct me if I'm wrong, the "garnishee order" is a legal thing... so companies would ignore it at their own peril?
 
Pretty sure that most of the debt causing *** for the miners is not the big banks, but in fact microlenders.
If I were Capitec I'd have a go at Godsell for this.
 
Have everybody noticed what has happened over the past 5 odd years?

We went from loan sharks offering cash loans to the banks taking over the cash loan business and becoming the loan sharks. Less than a decade ago you could find a cash loan type setup on almost every corner in almost every town. These are so to say completely gone now. The banks have taken over this role and are coining it all the way to the..... bank.

I agree with Godsell, if you want to be in the risky lending business then you should carry the risk and the costs, not pass it on to the employers who are already loaded with loads of administrative issues.
 
The_Assimilator said:
Yes, the banks are giving out loans left right and center, but they are for-profit corporations and that is their business model. At the end of the day, the onus is on the person taking out the loan to ensure they can repay it.
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NCA says otherwise.
 
I can hear the cries of outrage now :

"We can't strike because the banks won't borrow us the money"...


Maybe we can stop strikes indirectly by getting banks to refuse to lend money out to would-be strikers? :confused:
 
ToxicBunny said:
Correct me if I'm wrong, the "garnishee order" is a legal thing... so companies would ignore it at their own peril?
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Yeah, I also thought the bank would need to get a court order to compel the employer to deduct the money?
 
I agree with what he says, yet the finance world has managed to persuade government to pass laws that make it easy for them to force companies to do their dirty work for them. Its actually shocking how irresponsible lending is allowed to slide.
 
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