The other morning on Khaya FM I heard something fascinating. The SACP was saying that its GREATEST ACHIEVEMENT of 2006 was… the NCA… The National Credit Act.

Now some of you will recall that I’ve been warning about this hideous piece of legislation which is coming into force. I wrote about it a long time back. I did not know the SACP was behind it… but now that they’ve admitted it… it all makes sense.

This is a terrible piece of legislation. In my work, I was nearly involved in designing the changes to our computer systems to handle this horrific piece of legislation. But other priorities changed and it was handed to someone else – so I’m not complaining.

Basically, the NCA makes it ILLEGAL for any bank or lending institution to use normal logical processes to discriminate between customers who are a good risk and customers who are a bad risk. You cannot even use a person’s bad past record as the basis for rejecting his loan applications!

I reckon that the various processes which this Govt of ours is putting into place will hit the banks HARD in the years to come. The banks of course will survive by changing their pricing structures. I have been wondering if our banks aren’t going to get smacked so incredibly hard from various angles in the next few years – that it will send them reeling? I think the banks are in for the toughest time they have ever had in their history. Its their turn now… and its gonna hit them in the kisser!

Keep watching the NCA. It is going to become law in 2007. All financial institutions have to change their systems, at great cost, to accomodate this hideous piece of legislation. But, this hideous piece of legislation (like all communist claptrap) comes at an incredible cost to the taxpayer. There will be whole new bureacratic structures and courts which must be set up by Govt to back it up.

Basically… this piece of legislation will force banks to lend money to BAD RISK clients… So… who will pay for this? You guessed it… the GOOD CLIENTS! The clients who are honest and who pay their debts will be financing the scumbags… The Banks will not be able to turn away the rubbish clients! If they do, the Law will be all over their asses!!

Of course, the banks will look for loop holes – rest assured. But I can tell you, there aren’t many. In fact, all the discussions I’ve heard state that there are no loop holes. This is watertight stuff. From a business point of view… nobody has truly assessed how they will carry on doing business with this. It is a grey area and they will have to watch how Govt implements it, and what cases come up as a result. But at the very least, bad debts will be going up. So keep watching the NCA – which is the handiwork of the S.African Communist Party.

Of course, deep down, I don’t care if things go to hell in a handbasket. The more damage and destruction the ANC and SACP wreak on the country’s economy the better I say. Let them bring the country to its knees with their nonsense. The sooner the better I say. All they can do is DESTROY. Jan