Government may temporarily ban lenders from blacklisting consumers whose credit records have been hit by the coronavirus crisis.
A consultation document published by the Democratic Alliance showed that the Department of Trade and Industry (Dti) was considering banning blacklisting and ordering the removal of any adverse information on consumers’ profiles.
The ban will last until the end of September or when the national state of disaster ends, whichever comes first.
Trade and Industry Minister Ebrahim Patel said that government would carefully consider the proposal before making a decision.
The DA warned that the changes would hit banks’ lending appetite, pushing up the cost of credit, and allowing already indebted South Africans to rack up further borrowings.