National Treasury and the Financial Services Board (FSB) have extended an invitation to stakeholders to attend workshops following the publication of the Technical Report on the Consumer Credit Insurance Market in South Africa released for comment on 3 July 2014.
The workshops will discuss findings and focus areas arising from the report to enhance the public consultation process.
Issues identified by the report, include:
- Lack of transparency in the total cost of credit
- High premiums
- Difficult to compare due to differing products
- Needs of target market not being covered
Comment will be sought in respect of solutions to regulating pricing of market conduct non-pricing practices and protecting consumers through insurance cover for credit providers.
The first workshop takes place in Pretoria on 9 September followed by a second workshop in Cape Town on 19 September 2014.
A final policy document will be drawn up after which draft legislation will be formulated.