Many South Africans apply for credit out of desperation and need to be protected, says Masina

CAPE TOWN - Mzwandile Masina says next month’s meeting between MPs and major banks about their lending practices is not about being hostility towards the sector.

Masina, who chairs the National Assembly’s trade, industry and competition portfolio committee, confirmed on Friday that five major banks had agreed to meet with them next month.

The meeting will also include the standing committee on finance and will also look at the country’s laws which regulate credit.

"Our take is that this is not a hostile engagement, but it is an engagement to find the facts and to see whether or not we cannot recommend certain areas of improvement in the legislation that can then ensure that we balance the equation," said Masina.

Masina added that many South Africans apply for credit out of desperation and need to be protected.

"Individuals trying to get credit they do so out desperation and many times you have that fine print you only realise," said Masina.