Trade Minister Parks Tau withdraws draft credit regulations following concerns over student debt. Image: EWN.
(The Post News)- Minister of Trade, Industry, and Competition (DTIC), Parks Tau, has withdrawn draft regulations that proposed listing educational institutions as originators of credit information under the National Credit Act.
The controversial regulations, published in the Government Gazette in August 2025, sparked public backlash, with concerns that they could unfairly penalize students struggling with debt.
According to a statement from the DTIC, released on Thursday, September 11, the withdrawal followed “an unprecedented public response,” with more than 20,000 submissions received before the comment period closed last week. Ministerial spokesperson Kaamil Alli confirmed that most submissions opposed the draft regulations. “The vast majority of the responses were against the proposed regulations.
“This process has once more demonstrated the robust nature of South Africa’s democracy, where the public is able to engage with government in an open and transparent manner,” Tau said. The withdrawn amendments were initially intended to strengthen consumer protections, regulate how credit bureaus handle customer information, and refine affordability assessments. They also proposed granting credit bureaus access to information held by state organs on fraud investigations and consumers’ criminal records.
Tau Accused of Adding Financial Burdens on Students
However, critics argued that including educational institutions risked placing additional financial burdens on students and could effectively blacklist those with unpaid fees. Alli stressed that Minister Tau had heard the concerns and was committed to revising the approach. “Minister Tau has committed to undertaking a process that will consider the changes that are required to enhance the protection of students, while continuing with efforts aimed at improving access to finance for MSMEs in order to plug the credit funding gap that currently exists,” he said.
The minister also pledged further consultation with affected parties. “Minister Tau has also committed to engaging relevant stakeholders in order to further clarify this process and allay any fears with respect to the outcomes of this process,” Alli added.
Tau previously defended the intent of the amendments, saying they were designed to improve access to finance for Small, Medium, and Micro Enterprises (SMMEs) rather than disadvantage graduates. But he admitted that the scale of opposition necessitated a change of course.
About the Author
