Johannesburg – It is important to note that credit amnesty will not free consumers of the obligation to pay their debt.
The debt must still be settled if they are to keep your credit record clean in the future.
The South African government has implemented a credit amnesty from April 1 2014. The amnesty will give all consumers a fresh start with a clean credit record. This is great news for the many South Africans struggling to secure a job or a loan for a car or home as a result of a poor credit record.
According to the Department of Trade & Industry, about half of South Africa’s 21 million credit active consumers are behind or struggling with their repayments. Government is giving them a clean slate as it standardises and tightens lending requirements with new laws.
This is a welcome development for consumers who can’t get a bond or loan, because they may have struggled to pay off a credit card three or four years ago.