Three game changers to keep in mind: 1) Parliament has been asked to look into the maximum interest rate chargeable (prime * 2.5 + 10%), this formula has no factual basis. 2) Marikana will show that excessive interest rates on unsecured loans and the practice of garnishing orders was the cause of the strike, (unfortunately we still need to protect people from their own stupidity if they have access to credit as they will believe the mine is taking the money), And, 3) if garnishing orders are in place the cedit risk is lower and the interest rate charged should reflect this. Marikana has change the game for unsecured debt in South Africa, garnishing orders will be band, the formula will be amended as it discriminates against the poor. The result is higher bad debts and/or a lower growth in unsecured lending.
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