Indebted Students Won’t Be Blacklisted Under New National Credit Act Amendments

The Department of Trade, Industry and Competition (DTIC) has reassured South Africans that its proposed amendments to the National Credit Act will not result in indebted students being blacklisted.

The draft amendments, gazetted for public comment, aim to enhance consumer protection by tightening affordability assessments and improving how credit bureaus manage consumer information.

Among the proposals is a clause allowing credit bureaus to source information from educational institutions—sparking concern among student bodies.

In a statement released on Friday, the DTIC clarified: “These amendments are not aimed at prejudicing people with student debt.”

Proposed Changes Raise Student Debt Concerns

The inclusion of educational institutions as potential sources of credit information has triggered debate. Many fear this could worsen financial exclusion for young people already struggling to access credit.

EFF youth leader and Member of Parliament, Sihle Lonzi, criticised the proposal, arguing that it could condemn graduates to long-term financial hardship.

“Maybe they (students) wanted to start a business, they won’t be able to access credit or financing from banks because they have been condemned to permanent poverty by this government of the ANC,” Lonzi said.

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South Africans have until 12 September to submit comments on the proposed amendments. The DTIC has encouraged stakeholders to participate in shaping the law, which seeks to strike a balance between protecting consumers and ensuring credit providers act responsibly.

The final decision on whether educational institutions remain listed as sources of credit information will depend on public feedback.

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