South Africa: Banks to Curb Irresponsible Lending

South Africa's major retail banks and the Banking Association of South Africa (Basa) have signed an agreement with the National Treasury aimed at improving responsible lending and preventing households from becoming caught in a debt spiral.

In a joint statement on Thursday, Basa, the banks and the Treasury expressed concern over lending to households that could not afford their loans, illegal collection practices such as keeping ID documents, bank cards and PINs, selling inappropriate credit products to maximise margins, and extending unaffordable loans to pensioners and other social grant recipients.

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