The Marketing of Consumer and Mortgage Credit as a Responsible Lending Tool: A Comparison of South African, European and Belgian Law: Part 1

Keywords: Marketing, consumer credit, compulsory information, prohibited advertising, civil remedies, administrative sanctions, prohibited marketing techniques

Abstract

The vulnerability of prospective credit consumers to over-committing their resources and the inherent dangers posed by credit advertising in particular necessitate the proper regulation of credit marketing. It is therefore not unsurprising that responsible marketing forms part of the responsible lending (and borrowing) measures of various jurisdictions – including South Africa and the Member States of the European Union – with the aim of preventing the extension of credit to consumers who cannot afford it. In this article the credit marketing laws that the South African, European (mainly in the Consumer Credit and Mortgage Credit Directives) and Belgian legislators have enacted are considered and compared, with a focus on the information to be included in advertising, prohibited advertising and prohibited marketing techniques. The ultimate aim is to determine whether South African law contains sufficient guarantees to protect consumers with respect to credit marketing and its consequences.

 

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Author Biography

Reinhard Steennot, Ghent University
LLM (Ghent) LLD (Ghent)

References

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South Africa
Consumer Protection Act 68 of 2008
Electronic Communications and Transactions Act 25 of 2002
Financial Advisory and Intermediary Services Act 37 of 2002
Financial Sector Regulation Act 9 of 2017
National Credit Act 34 of 2005
United Kingdom
Moneylenders Act of 1927
Government publications
GN R489 in GG 28864 of 31 May 2006
GN 713 in GG 28893 of 1 June 2006

ARB 2019 http://arb.org.za/assets/section-i.pdf
Advertising Regulatory Board 2019 Code of Advertising Practice: Section I - Introduction http://arb.org.za/assets/section-i.pdf accessed 12 March 2019

ARB 2019 http://arb.org.za/assets/section-iii.pdf
Advertising Regulatory Board 2019 Code of Advertising Practice: Section III - Specific Categories of Advertising http://arb.org.za/assets/section-iii.pdf accessed 12 March 2019

ARB 2019 http://arb.org.za/index.html
Advertising Regulatory Board 2019 Home Page http://arb.org.za/index.html accessed 12 March 2019
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Published
2020-01-22
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Articles