Pre-agreement assessment as a responsible lending tool in South Africa, the EU and Belgium: Part 2
Keywords:
responsible lending, reckless credit granting, pre-agreement assessment, affordability, creditworthiness
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.
References
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Biquet-Mathieu C "Du financement d'un véhicule par l'octroi d'une ouverture
de crédit sans obligation d'apurement périodique du capital" 2008 journal
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Biquet-Mathieu 2009 Tijdschrift voor Vrederechters
Biquet-Mathieu C "Les revenus des co-débiteurs solidaires peuvent-ils être
cumulés pour apprécier la viabilité du crédit au sens de l'article 15 de la loi
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Mak 2009 ERPL
Mak V "Review of the Consumer Acquis: Towards Full Harmonization?"
2009 ERPL 55-73
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Belgium
Act of 21 December 2013 Concerning the Financing of Small-and Medium-
Sized Companies
Civil Code of 1804
Code of Economic Law of 2013
Consumer Credit Act of 1991
South Africa
National Credit Act 34 of 2005
Protection of Personal Information Act 4 of 2013
Government publications
GN R489 in GG 28864 of 31 May 2006
GN R1209 in GG 29442 of 30 November 2006
International instruments
Council Directive 87/102/EEC of 22 December 1986 for the Approximation
of the Laws, Regulations and Administrative Provisions of the Member
States Concerning Consumer Credit
Directive 93/13/EEC of the European Parliament and of the Council of 5
April 1993 on Unfair Terms in Consumer Contracts
Directive 2008/48/EC of the European Parliament and the Council of 23
April 2008 on Credit Agreements for Consumers and Repealing Council
Directive 1987/102/EEC
Directive 2014/17/EU of the European Parliament and of the Council of 4
February 2014 on Credit Agreements for Consumers Relating to Residential
Immovable Property and Amending Directives 2008/48/EC and 2013/36/EU
and Regulation (EU) No 1093/2010
Regulation (EC) No 593/2008 of the European Parliament and of the
Council of 17 June 2008 on the Law Applicable to Contractual Obligations
(Rome I)
Internet sources
INTOSAI 2010 https://docmh.com/the-causes-of-the-global-financial-crisis-
and-their-implications-for-supreme-audit-institutions-pdf
International Organizations of Supreme Audit Institutions (INTOSAI) 2010
The Causes of the Global Financial Crisis and Their Implications for
Supreme Audit Institutions https://docmh.com/the-causes-of-the-global-
financial-crisis-and-their-implications-for-supreme-audit-institutions-pdf
accessed 17 April 2017
Statistics South Africa 2017 https://nationalgovernment.co.za/units/view/43-
Statistics-South-Africa-Stats-SA
Statistics South Africa 2017 Statistics Unemployment Report
https://nationalgovernment.co.za/units/view/43-Statistics-South-Africa-
Stats-SAaccessed 18 April 2017
Literature
Biquet-Mathieu 2008 Journal de Jurisprudence de Liège, Mons et Bruxelles
Biquet-Mathieu C "Du financement d'un véhicule par l'octroi d'une ouverture
de crédit sans obligation d'apurement périodique du capital" 2008 journal
de Jurisprudence de Liège, Mons et Bruxelles110-112
Biquet-Mathieu 2009 Tijdschrift voor Vrederechters
Biquet-Mathieu C "Les revenus des co-débiteurs solidaires peuvent-ils être
cumulés pour apprécier la viabilité du crédit au sens de l'article 15 de la loi
sur le crédit à la consommation?" 2009 Tijdschrift voor Vrederechters284-
291
Bank of International Settlements (BIS) 78th Annual Report
Bank of International Settlements (BIS) 78th Annual Report:The Financial
Turmoil of 2007–?: A Preliminary Assessment and Some Policy
Considerations (BIS Basel 2008)
De Muynck Consumentenkrediet
De Muynck M Consumentenkrediet: de wet van 13 juni 2010 gewikt en
gewogen(CahiersAntwerpen 2011)
De Muynck 2012 Tijdschrift voor Privaatrecht
De Muynck M "Zeilen op het Europees kompas. De implementatie van
suitability of assistance in de wet consumentenkrediet" 2012 Tijdschrift voor
Privaatrecht 761-869
Grundmann and Hollering 2008 ERCL
Grundmann S and Hollering J "EC Financial Services and Contract Law –
Developments 2005-2007" 2008 ERCL45-64
Lettany Het Consumentenkrediet
Lettany P Het Consumentenkrediet(Kluwer Deurne 1993)
Mak 2009 ERPL
Mak V "Review of the Consumer Acquis: Towards Full Harmonization?"
2009 ERPL 55-73
Rott "Consumer Credit"
Rott P "Consumer Credit" in Micklitz H, Reich N and Rott P Understanding
EU Consumer Law(Intersentia Antwerp 2009) 199
Scholtz "Introduction and Historical Background"
Scholtz JW "Introduction and Historical Background to the National Credit
Act" in Scholtz JW (ed) Guide to the National Credit Act(LexisNexis Durban
2008) paras 1.1-1.102
Steennot 2013 REDC
Steennot R"Case Volksbank România: Limits of the Full Harmonization
Approach of the Consumer Credit Directive" 2013 REDC87-100
Terryn and Vannerom "De nieuwe richtlijn consumentenkrediet"
Terryn Eand Vannerom J "De nieuwe richtlijn consumentenkrediet en de
implicaties voor de Belgische wetgeving" in VRG-Alumni (ed) Recht in
beweging –16de VRG Alumnida (Maklu Antwerp 2009) 19-49
Twigg-Flesner 2007 ERCL
Twigg-Flesner C "No Sense of Purpose or Direction? The Modernization of
European Consumer Law" 2007 ERCL 198-213
Van der Herten "De omzetting in het Belgisch recht"
Van der Herten F "De omzetting in het Belgisch recht van de nieuwe
Europese richtlijn inzake consumentenkrediet" in Boddaert C et alLiber
Amicorum Achilles Cuypers(Larcier Gent 2009) 277-304
Vannerom 2016 Tijdschrift Consumentenrecht
Vannerom J "Een bondig overzicht van het hypothecair krediet 2.0" 2016
Tijdschrift Consumentenrecht (DCCR)afl 111 61-72
Vannerom andCasier "De Bescherming van de Consument"
Vannerom J and Casier E "De Bescherming van de Consument in
Hypothecair Krediet in Europees Perspectief" in Straetmans G and
Steennot R (eds) Wetboek Economisch Recht en de Bescherming van de
Consument (Intersentia Antwerpen 2015) 235-256
Case law
Belgium
Cass 7 January 2008, 2009 Tijdschrift voor Vrederechters281, case note C
Biquet-Mathieu,2009Tijdschrift voor Consumentenrecht(DCCR)afl 83, 71,
case note D Blommaert and Z Pletinckx
Court of Appeal Brussels 26 March 2012, 2012 Rechtspraak Antwerpen,
Brussel, Gent1152, note F Bonnarens
Rb Antwerp 16 January 2004, 2004 Nieuw Juridisch Weekblad 1065
Rb Luik 21 Oktober 2011, 2014 Jurisprudence Liège, Mons et Bruxelles 224
Vred Arendonk 29 September 2009, 2012 Tijdschrift voor Vrederechters
281, case note F de Patoul
Vred Kortrijk 29 June 2004, 2004 Jaarboek Kredietrecht 55
Court of Justice of the European Union
Berliner Kindl Brauerei AG v A SiepertCJ 23 March 2000, C-208/98,
ECLI:EU:C:2000:152
CA Consumer Finance v Ingrid Bakkaus CJ 18 December 2014, C-449/13,
ECLI:EU:C:2014:2464
Content Services Ltd v BundesarbeitskammerCJ 5 July 2012, C-49/11,
ECLI:EU:C:2012:419
Home Credit Slovakia v Klára BíróováCJ 9 November 2016, C-42/15,
ECLI:EU:C:2016:842
Horațiu Ovidiu Costea v SC Volksbank România SACJ 3 September 2015,
C-110/14, ECLI:EU:C:2015:538
Hotel Alpenhof GesmbH v Oliver HellerCJ 7 December 2010, C-144/09,
ECLI:EU:C:2010:740
LCL Le Crédit Lyonnais SA v Fesih KalhanCJ 27 March 2014, C-565/12,
ECLI:EU:C:2014:190
Max Rampion and Marie-Jeanne G-odard, née Rampion v Franfinance SA
and K par K SASCJ 4 October 2007, C-429/05, ECLI:EU:C:2007:575
Pavel Dumitraș and Mioara Dumitraș v BRD Groupe Société GénéraleCJ
14 September 2016, C-534/15, ECLI:EU:C:2016:700
Peter Pammer v Reederei Karl Schlüter Gm bH & Co KGCJ 7 December
2010, C-585/08
SC Volksbank România SA v Autoritatea Naţională pentru Protecţia
Consumatorilor CJ 12 July 2012, C-602/10, ECLI:EU:C:2012:443
Texdata Software GmbHCJ 26 September 2013, C-418/11,
ECLI:EU:C:2013:588
South Africa
Standard Bank of South Africa Ltd v Herselman(FS) (unreported) case
number 328/2015 of 3 March 2016
Legislation
Belgium
Act of 21 December 2013 Concerning the Financing of Small-and Medium-
Sized Companies
Civil Code of 1804
Code of Economic Law of 2013
Consumer Credit Act of 1991
South Africa
National Credit Act 34 of 2005
Protection of Personal Information Act 4 of 2013
Government publications
GN R489 in GG 28864 of 31 May 2006
GN R1209 in GG 29442 of 30 November 2006
International instruments
Council Directive 87/102/EEC of 22 December 1986 for the Approximation
of the Laws, Regulations and Administrative Provisions of the Member
States Concerning Consumer Credit
Directive 93/13/EEC of the European Parliament and of the Council of 5
April 1993 on Unfair Terms in Consumer Contracts
Directive 2008/48/EC of the European Parliament and the Council of 23
April 2008 on Credit Agreements for Consumers and Repealing Council
Directive 1987/102/EEC
Directive 2014/17/EU of the European Parliament and of the Council of 4
February 2014 on Credit Agreements for Consumers Relating to Residential
Immovable Property and Amending Directives 2008/48/EC and 2013/36/EU
and Regulation (EU) No 1093/2010
Regulation (EC) No 593/2008 of the European Parliament and of the
Council of 17 June 2008 on the Law Applicable to Contractual Obligations
(Rome I)
Internet sources
INTOSAI 2010 https://docmh.com/the-causes-of-the-global-financial-crisis-
and-their-implications-for-supreme-audit-institutions-pdf
International Organizations of Supreme Audit Institutions (INTOSAI) 2010
The Causes of the Global Financial Crisis and Their Implications for
Supreme Audit Institutions https://docmh.com/the-causes-of-the-global-
financial-crisis-and-their-implications-for-supreme-audit-institutions-pdf
accessed 17 April 2017
Statistics South Africa 2017 https://nationalgovernment.co.za/units/view/43-
Statistics-South-Africa-Stats-SA
Statistics South Africa 2017 Statistics Unemployment Report
https://nationalgovernment.co.za/units/view/43-Statistics-South-Africa-
Stats-SAaccessed 18 April 2017
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