HOME BUYER CREDIT REPAIR & PUBLIC SECTOR GROUP SCHEME

EXECUTIVE SUMMARY

Overview

Research shows that 60% of Public Servants who apply for Home Loans are being declined by the banks due to their financial distress. Therefore, banks are left with no option but to decline these home loan applications outright without explanation, or even providing advice, otherwise they would overstep the NCA (National Credit Act) ruling for “reckless lending”. As a matter of fact, during 2006-2007 Financial Year, a report on the indebtedness of public servants was issued by The Public Service Commission to alert well-being divisions within the sector to embark on an EAP (Employee Assistance Programme) with a key focus on a legislative framework to support employees with debt management. However, the latter is not a sustainable solution to provide financial freedom.