A new ruling by a Cape Town high court judge, Keith Engers, has set aside a credit regulation requirement that has been in force since March 2015.
According to an article in Business Day, The Foschini Group (TFG), Mr Price and Truworths had brought an action against the National Credit Regulator (NCR) and the minister of Trade & Industry, asking the court to set aside an amendment to the National Credit Act (NCA) that required applicants for credit to produce their three latest pay slips.
Their stance was that it disadvantaged consumers who were self-employed or employed in the informal sector – approximately 15% of TFG consumers, according to the information given to Business Day.
TFG CFO and CEO designate Anthony Thunström says the company has always been a responsible lender, and has “models for applying stringent rules when it comes to determining affordability”.
According to Business Day, 69% of Truworths’ sales are attributed to credit, but only 24% of new credit applicants were approved in the half-year to December 2017.
Meanwhile, Mr Price has only had 36% of new credit applications approved in six months to September 2017.
Original article by Stafford Thomas for Business Day