Thursday, November 02, 2006

Shake-up in loans procedures

I attended an all-day Nebank Conference yesterday and enjoyed a briefing on the shake-up in the credit industry about to take place, as well as where Nedbank is currently positioning itself in the home loans market-place.

In terms of the National Credit Act which is due to take effect 1st June 2007 only registered credit providers can make loans to individual consumers. The consequences of failing to register is that the credit agreement will be invalid and the consumer need not have to repay the loan. It will also clamp down on credit bureaux and the length of time adverse records are kept. The new regulations will have considerable impact on the way we, as the banks attorneys and conveyancers, present documents to clients and the training of the staff who explain legal contracts to clients. Mc Naught and Company are ready for these changes and remain at the forefront in assuring the public that they will always receive professional advice and care in all of their financial transactions and mortgage registrations.

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