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IQ LAUNCHES COMPLIANCE SOLUTION
Solutions for Compliance South Africa’s new National Credit Bill is expected to be implemented early in the new year. Aimed at abusive money-lending and credit practices, the Bill is designed to assist the vulnerable consumer. It does however pose an administrative compliance nightmare to financial services institutions. 
The new Bill has far-reaching impacts, particularly increasing the administrative costs of credit providers. However it goes much further than just administrative compliance, because it covers virtually every credit agreement and practice, thereby placing an increasing amount of responsibility on credit providers and financial institutions, which will in turn impact product and service offerings. Non-compliance could result in heavy penalties and licence confiscations. However this logistical nightmare, which needs to include training of each and every staff member, as well as agents on the legislation, could potentially be a strategic advantage for forward-thinking financial institutions. Chris Backwell, specialist at The IQ Business Group is one of our country’s leading experts on the Credit Bill, says, “The new Credit Bill is going to dramatically change credit providers’ products and systems. The financial impact for all credit providers is huge, but there are solutions, which if implemented now, will assist organisations obtain competitive advantage.” Points of Impact “Processes from solicitation of new business right through to collections and debt recovery will be affected. Products may well have to change structurally in order to comply with the Bill,” comments Backwell. Customer interaction costs will increase dramatically in order for financial institutions to comply. “It’s time to stop viewing the Credit Bill as a compliance issue, and keeping it in an operational realm, when it holds strong strategic value and importance,” says Backwell.
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