On 9 August, the new limits on how much a lender can charge for credit insurance came into effect.
Tag - credit insurance
A cap placed on how much a lender can charge for credit insurance could result in cheaper loans, but some warn it could also cut credit to higher-risk individuals.
Proposals to curb the costs of borrowing will be welcomed, but a likely consequence is that less credit will be available.
The National Credit Regulator is clamping down on the type of unethical practices that have long plagued the consumer credit insurance industry.
Abuse within the credit insurance industry has led to an investigation by National Treasury into the practices of credit providers selling credit life to customers. If you have borrowed money, whether it be through a furniture retailer, micro-lender or a bank, you will most likely have credit insurance. This is because the National Credit Act...