Zuko Komisa
- Trade and Industry Minister Parks Tau has withdrawn draft regulations that would have allowed for the blacklisting of individuals with student debt.
- The decision follows an overwhelming public backlash, with the department receiving over 20,000 submissions against the proposed amendments to the National Credit Act.
- The Minister will now focus on a new process to protect students while still working to improve access to finance for small and medium enterprises.
The Minister of Trade and Industry, Parks Tau, has withdrawn controversial draft regulations that would have allowed for individuals with student debt to be blacklisted. The decision follows a significant public outcry over the proposed changes to the National Credit Act of 2005.
The amendments were recently published for public comment and were intended to strengthen consumer protection, with new rules on how credit bureaus handle customer information and conduct affordability assessments. However, a major point of contention was a proposal to grant credit bureaus access to information from state organs, including details on fraud investigations and criminal records.
Minister Tau had initially defended the move, stating the amendments were aimed at improving access to finance for Small, Medium, and Micro Enterprises (SMMEs) and would not prejudice graduates who owe university fees. Despite this, the public’s response was overwhelmingly negative.
The minister’s office confirmed that the withdrawal was a direct result of the public’s reaction, with the department receiving over 20,000 submissions—most of which were against the proposed regulations—before the comment period closed.
Moving forward, Tau stated he will initiate a new process to consider necessary changes that protect students while continuing efforts to address the credit funding gap for SMMEs.
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