Media Release 

December 2014 

The National Credit Regulator (NCR) today released the „Consumer Credit Market Report‟ (CCMR) and the Credit Bureau Monitor (CBM), which are based on the data submitted to the NCR by registered credit providers and credit bureaus respectively. This latest edition of the reports covers credit market information up to September 2014. 

 

Mortgages continued to grow for the second consecutive quarter by R3.71 billion (11.18%) when compared to the previous quarter and R2.37 billion (6.86%) on a year-on-year basis. The value of the mortgages debtor‟s book was R834.40 billion as at September 2014 which amounted to 53.19% of the total debtor‟s book. A total of 91.05% of the mortgages repayments were up-to date as at September 2014. 

 

Nomsa Motshegare, CEO of the NCR, advised consumers to avoid the temptation of overindulging and overspending during the festive season. Consumers must avoid the post-holiday blues by not going on a spending spree during this period. Consumers must avoid impulsive shopping and prioritize the repayment of their debts including their home loans, adds Motshegare. She also encouraged consumers to live within their means, borrow only when it is absolutely necessary and this must be done in a responsible manner.

 

The total value of new credit granted increased from R107.19 billion for the quarter ended June 2014 to R110.18 billion for the quarter ended September 2014, a quarter-on-quarter increase of 2.79%. There was an overall quarter-on-quarter growth for all credit types with the exception of unsecured and developmental credit which declined. The number of applications received for credit decreased by 727,000 from 10.37 million in June 2014 to 9.64 million in September 2014, a quarter-on-quarter decrease of 7.02%. 

The following were some of the most significant trends observed in terms of credit granted for the

quarter ended September 2014:  

  • The value of new mortgages granted increased by 11.18% quarter-on-quarter from R33.18 billion to R36.89 billion. 
  •  Unsecured credit decreased from R19.32 billion for June 2014 to R18.23 billion for September 2014, a quarter-on-quarter decrease of 5.62%.  
  • Short-term credit increased from R1.29 billion for the quarter ended June 2014 to R1.42 billion for the quarter ended September 2014, an increase of 9.97%. 

As at September 2014, the total outstanding consumer credit balances (or gross debtor‟s book) was R1.57 trillion, representing a quarter-on-quarter decline of 0.02% and a year-on-year growth of 5.04%. The trends for outstanding balances for the quarter ended September 2014 were as follows:  

  • Mortgages debtor‟s book increased from R834.37 billion for the quarter ended June 2014 to R834.40 billion for the quarter ended September 2014, an increase of  R33.75 million (0.004%) and R24.51 billion (3.03%) on a year-on-year basis. 
  • Unsecured credit debtor‟s book decreased from R172.20 billion for June 2014 to R169.80 billion for September 2014, a quarter-on-quarter decrease of 1.40%. On a year-on-year basis the book grew by R2.39 billion (1.43%). 

Credit bureaus held records for 22.50 million credit-active consumers, an increase of 1.7% when compared to the 22.12 million in the previous quarter. Consumers classified in good standing increased by 276,000, to 12.45 million consumers. As a percentage of the total number of creditactive consumers at 55.3%, this reflects a decrease of 0.3% quarter-on-quarter and an increase of 3.4% year-on-year.  

 

The number of consumers with an impaired record has increased by 105,000 from 9.95 million to 10.05 million. As a percentage of the total number of credit-active consumers at 44.7%, this reflects an increase of 0.3% quarter-on-quarter and a decrease of 3.4% year-on-year. The number of accounts increased from 79.42 million in the previous quarter to 81.18 million for the quarter ended September 2014. The number of impaired accounts increased from 21.28 million to 21.64 million when compared to the previous quarter, an increase of 359,000 quarter-on-quarter and 2.39 million year-on-year. 

 

A total of 379.35 million enquiries were made on consumer credit records, an increase of 3.7% quarter-on-quarter and 6.1% year-on-year. Enquiries initiated by consumers accounted for 14.96 million of all enquiries, a decrease of 1.9% quarter-on quarter and 7.4% year-on-year.

 

The number of credit reports issued to consumers increased to 173,194. Of the total credit reports issued, 72.6% (125,689) were issued without charge, and the remaining 27.4% (47,505) were issued with charge. There were 23,334 disputes lodged on information held on consumer credit records for the quarter ended September 2014, an increase of 9.3% quarter-on-quarter and an increase of 8.7% year-on-year.

 

Consumers should look out for misleading adverts such as “no credit checks required”, “blacklisted consumers welcome”, “free credit” and must not be cajoled into such adverts. Beware of “balloon payments/residual value” and “buy now, pay later” deals!  Make sure you understand the content of the credit agreement very well before you sign, concluded Motshegare.

 

Comparisons in this release - ‘quarter-on-quarter’ refers to a comparison between the June 2014 and September 2014 quarters, and ‘year-on-year’ refers to a comparison between the September 2013 and September 2014 quarters. 

 

Ends 


Issued by: 

Lebogang Selibi 

National Credit Regulator

Tel: (011) 554 – 2722 

Email: This email address is being protected from spambots. You need JavaScript enabled to view it. 

Website: www.ncr.org.za

 

Subscribe to media release on lselibi@ncr.org.za