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Debt-relief law would chase poor from banks to loan sharks


Debt-relief law would chase poor from banks to loan sharks

Capitec cuts its lending to lower-income people, opening the door to lawless operators ... or TymeBank

Londiwe Buthelezi

On Monday Capitec confirmed what the Banking Association of SA has been warning the government about – that banks will turn off their lending taps for low-income earners if debt-relief regulations become law.

Capitec was initially built to serve low-income earners, but  the demographic profile of its clients has been in a state of flux for a while.

The bank does not use income demographics to segment its customers but it is common knowledge among investment analysts that, like other banks, Capitec has been “migrating upwards” to cater for higher-income segments. ..

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