The number of consumers with impaired credit records has risen in the three months to June, despite the National Credit Regulator’s (NCR’s) efforts in putting stringent affordability criteria in place. A Business Day report says the NCR’s quarterly credit bureau monitor – released yesterday – showed that of the 24.08m people with lines of credit open, 9.67m or 40.2% had impaired records. This rose 124 000 on the previous quarter.

These customers were either more than three months late in paying their accounts, had adverse listings, or had judgment and administration orders granted against them. Credit extension has declined, with the accompanying Consumer Credit Market Report showing that credit facilities such as store and credit cards dropped 29.49% to R12bn in the year to June 2016. Other credit transactions, including home loans, increased by just 1.11% to R96.3bn during the same period. Retailers suffered the worst decline in credit extensions during the year, with shoppers spending R2.97bn on credit – a 32.3% plunge.

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