South Africa's credit providers are racing to sign up clients before a new law makes it illegal for them to extend credit to consumers deemed unlikely to pay back the money.
Lenders are resorting to mailing credit cards to prospective clients and offering them pre-approved loans in text messages and high-pressure phone calls ahead of the June 1 introduction of the National Credit Act.
"While the law will not limit these offers of credit, it will put the onus on them to disclose all the information about the total cost of credit and the interest rates," Gabriel Davel, head of the government's credit regulatory body, said.
Lenders could find their credit contracts declared void if they do not inform a consumer about all the charges and interest rates attached to loans.
full story from M&G here