South African consumer credit policy: Measures indirectly aimed at preventing consumer over-indebtedness

Abstract

The global economy boomed during the last two decades, largely because credit was easy to grant and to access. But this boom came at a price: the unprecedented number of individuals and businesses that are over-indebted. Legislation protecting debtors and directly or indirectly aimed at preventing the problems of overspending is now an international phenomenon, though differing from country to country, depending on local needs. Generally, though, it seeks to address the imbalance between the bargaining power of credit providers and consumers, to combat malpractices by identifying and prohibiting such malpractices, and to limit the free exercise of legal remedies.