Quote Originally Posted by Miro Bagrov View Post
What's the difference between micro lenders and macro lenders? Why bash the small guy?
Small guys, do small damage.
Micro lenders aren't necessarily small operations - they just specialise in small, short term loans - typically at very high interest rates.

The effect on disposable income of pay day loan operators in the UK has also come under fire in the past week or so - a very similar issue. (EDIT: I see IanF has also brought up this point while I was drafting this response.)

Also, the individual operators may be small by comparison to the big banks, but do not underestimate the size of this sector as a whole, and its ability to significantly affect the shape of our economy - especially in the low income bracket.

Quote Originally Posted by IanF View Post
Dave I wonder why Trevor Manuel did not bring this up or maybe it was ignored by the reporter?
I've been chewing over that, and on reflection I suspect "in duplum" and pretty much the rest of the NCA is near worthless as a measure to control damaging credit provision in the micro loan market. These are aggressive operators not averse to risk and stretching the law past its limits, both in credit extension and collection.

It's a problem that is definitely going to need a multi-faceted response.