debt and social grants
Reduce cost of credit.
With the Black Sash, Deborah James and David Neves, I demonstrated how debt continued to be foisted on grant recipients, even after the delivery of social grants was moved to the Post Office. We found that despite such changes, social grantees remain a significant market for so-called "formal and informal" money-lenders. Creditors use government grants as collateral for credit because such payments are regular and secure incomes. They also charge extremely high (though legal) interest rates based on the erroneous perception that grant recipients are a "risky" credit market. Given these findings, we are advising the National Credit Regulator, Department of Trade and Industry, Department of Social Development, and the South African Social Security Agency on how to protect social grantees from reckless lending.