Ramaphosa signs controversial debt-relief bill into law

supersunbird

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President Cyril Ramaphosa has signed into law the controversial debt-relief bill which contains provisions strongly opposed by the banking industry and the DA.

In a formal announcement published in parliament on Thursday, the national legislature revealed that the president approved the National Credit Amendment Bill earlier this week.

The bill provides for the extinguishing of the debt of heavily indebted consumers who earn a gross monthly income of no more than R7,500; have unsecured debt amounting to R50,000; and who have been found to be critically indebted by the National Credit Regulator.

The Treasury estimates that the debt-relief proposals could result in the write-off of R13.2bn to R20bn of debt, which is the total amount of debt falling under the debt-extinguishing provisions of the bill.
More at: https://www.businesslive.co.za/bd/national/2019-08-15-breaking-news-ramaphosa-signs-controversial-debt-relief-bill-into-law/
 

DreamKing

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that is a part of his plan how to turn around the economy .........

RIP SA economy. amen.
 

SauRoNZA

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If it pertains to existing debt and prescribes legislation that will prevent new debt like this was being taken then I can sort of roll with it.

But really some form of payment plan system would make more sense to people also take responsibility.

Sadly it’s way too easy to get into debt and many even reasonably intelligent people get duped into it.
 

oRiX

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NHI, debt relief for the poor, free education, free land and house... me, can't afford to buy a house, can barely afford hospital plan, can't afford to take my masters, half my take home comes off as debt... still have to pay tax so that others can have that for free.
 

Arthur

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The government just expropriated R20 000 000 000 of other people's money and gifted it to those with an established record of not being able to manage their own money. They must be recruiting.
 

Drifter

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Not too bad a thing, the spin off should be that they go after reckless lenders in a BIG way. That is where the chit starts.
 

noxibox

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Quite a lot of that was probably reckless lending, so I have no sympathy. They're just as culpable as the people taking out loans they cannot afford to pay back.
 

MidnightWizard

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NHI, debt relief for the poor, free education, free land and house... me, can't afford to buy a house, can barely afford hospital plan, can't afford to take my masters, half my take home comes off as debt... still have to pay tax so that others can have that for free.
You DO know that they went to Venezuela to learn how to do this ....
Stupid understands FREE all to well
The manipulators understand STUPID all to well
A match made in revolutionary fantasy land
Very simple but clever plan to destroy the state and economy so that the Communist UTOPIA ( DYStopia ) can be ushered in !
 

SaiyanZ

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Think it is a bad thing if most of that debt is from the banks because the bill is footed by paying customers like most of us. If it's from loan sharks then it's a good thing.

End result either way is no more easy loans for the poor. So people will starve/suffer after their once off freebie loan.
 

JustAsk

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If it pertains to existing debt and prescribes legislation that will prevent new debt like this was being taken then I can sort of roll with it.
It is...

But really some form of payment plan system would make more sense to people also take responsibility.
There is...5 year debt restructuring plan is the first option. Write-off is the last option and there's a cap to it.

The law will allow eligible highly indebted consumers to apply for various debt relief interventions, including:
• Restructuring their debt repayment schedule over five years or, if not possible, then suspending credit payments for 12-24 months with regular reviews;
• Extinguishing the debt or a percentage of the debt if after two years the consumer is still not able to pay the debt; and
• Empowering magistrates to reduce interests charges to as low as 0%.
 

Mila

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So if I stop paying now I can get it extinguished... what does the law say regarding future debt?

Are they going to black list people? For how long?
 
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