Mhlauli emphasised that the changes currently under public consultation aim to provide support to enterprises, rather than impose restrictions on students.
Deputy Minister in the Presidency, Nonceba Mhlauli, clarified on Thursday that the draft amendments to the National Credit Act will not blacklist students.
This comes after concerns were raised over the recently gazetted draft amendments, which would affect the National Credit Act by including a provision that would permit the listing of outstanding student loans and education-related debt with credit bureaus.
Regulations focus on supporting young entrepreneurs
Mhlauli clarified that the new regulations focus on providing support for MMEs (Micro and Medium Enterprises) and MMMEs (Micro, Medium, and Macro Enterprises).
“There is no new regulation that blacklists students.”
She emphasised that the changes currently under public consultation aim to provide support to enterprises, rather than impose restrictions on students.
Mhlauli added that educational institutions have always been included under the National Credit Act.
“If you look at the legislation of 2006, they have actually always been there. What other parties are trying to present as a new regulation has actually always been in law,” she said.
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Focus should be on protecting students
The deputy minister addressed concerns about whether higher education institutions should be included on the list of entities that creditors can access for blacklisting purposes.
“The big question really is whether we should have institutions of higher learning or educational institutions as listed on the list of institutions where creditors can get information from for blacklisting purposes,” she explained.
Mhlauli stressed that, over the past 19 years, there have been no reported cases of students being unfairly blacklisted.
“If you look at the past 19 years, there actually has not been an instance where that has actually happened,” she said.
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Possible amendments to the National Credit Act
Looking ahead, Mhlauli suggested that parliament should consider amending the law to ensure young people are protected.
“The question for me is not around the regulations that are currently out… but whether we, as members of parliament, should undergo a process to ensure the necessary protections are there in law,” she said, referring to the principal National Credit Act of 2006.
“We should discuss removing educational institutions of higher learning from the list entirely. That is the debate we should be having.”
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