Pre-Agreement Assessment as a Responsible Lending Tool in South-Africa, the EU and Belgium: Part 1

30 Pages Posted: 7 May 2018

See all articles by C. M. Van Heerden

C. M. Van Heerden

University of Pretoria

Reinhard Steennot

Ghent University - Department of Business Law

Date Written: March 19, 2018

Abstract

Responsible lending has become a very pertinent issue on the agenda of credit regulators across the globe who seek to combat the causes of consumer over-indebtedness. In this context, the use of "pre-agreement assessment" as a tool to filter out those instances where, based on a consumer's creditworthiness or ability to repay, credit should not be granted to such a consumer, is a feature common to the lending regimes of various jurisdictions. This contribution consists of two parts: Part 1 provides a critical discussion of the reckless credit provisions of the National Credit Act 34 of 2005. Part 2 details the responsible lending measures contained in the EU Consumer Credit Directive and the EU Mortgage Credit Directive and provides an appraisal of the responsible lending measures introduced by Belgium, being a jurisdiction that has always been very pro-active in the context of consumer credit protection.

Keywords: Responsible Lending, Reckless Credit Granting, Pre-Agreement Assessment, Affordability, Creditworthiness

Suggested Citation

Van Heerden, C. M. and Steennot, Reinhard, Pre-Agreement Assessment as a Responsible Lending Tool in South-Africa, the EU and Belgium: Part 1 (March 19, 2018). Potchefstroom Electronic Law Journal, Vol. 21, 2018, Available at SSRN: https://ssrn.com/abstract=3165962

C. M. Van Heerden (Contact Author)

University of Pretoria ( email )

Physical Address Economic and Management Sciences
Pretoria, Gauteng 0002
South Africa

Reinhard Steennot

Ghent University - Department of Business Law ( email )

Universiteitstraat 4
Gent, B-9000
Belgium

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