Minister of Trade, Industry and Competition, Parks Tau, has withdrawn the National Credit Amendment Act regulations after receiving over 20 000 submissions.
Tau initially published the draft regulations in the government gazette on 13 August 2025, sparking widespread criticism from civil society, political parties and the public.
PARKS TAU WITHDRAWS REGULATIONS A DAY BEFORE DEADLINE
Tau announced the withdrawal of the National Credit Amendment Act regulations on 11 September 2025, just one day before the deadline for public comments.
The decision follows an overwhelming submission of responses that criticised the proposed amendments.
The minister’s spokesperson, Kaamil Alli, confirmed that the majority of submissions were against the regulations.
As a result, Tau withdrew the National Credit Amendment Act regulations, with Alli saying: “This process has once more demonstrated the robust nature of South Africa’s democracy”
Alli added that Tau would consider alternative measures to protect students while supporting efforts to improve access to finance.
He will further engage with stakeholders to provide clarity on the planned process.
THE CONTROVERSIAL CLAUSE: USING STUDENT DATA FOR CREDIT SCORES
The proposed National Credit Amendment Act regulations sought to designate educational institutions as credit information providers.
This meant that universities and colleges would be required to report students’ payment history and outstanding debt to credit bureaus.
A move that could negatively impact students’ credit scores and future financial opportunities.
The proposal faced fierce backlash from citizens, civil organisations, and political parties such as the Economic Freedom Fighters (EFF).
EFF HAILS WITHDRAWAL AS A “VICTORY FOR THE PEOPLE”
The EFF welcomed Tau’s decision, hailing it as a “victory for the people”.
They described the proposed National Credit Amendment Act regulations as “anti-poor and anti-student.”
In response to the ongoing student debt crisis, the EFF’s Student Command has proposed a Student Debt Cancellation Bill.
The party was most vocal about the negative impact the regulations, if implemented, could have on students.
However, the EFF emphasised that Tau’s U-turn was not an act of goodwill but rather a response to mounting public pressure.
DO YOU THINK MINISTER TAU MADE THE RIGHT CALL BY WITHDRAWING THE NATIONAL CREDIT AMENDMENT ACT REGULATIONS?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 0211.
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