Current Project
debt and social grants
The Black Sash, Deborah James, David Neves and Erin Torkelson
REDUCING THE COST OF CREDIT TO ADULT GRANTEES FROM 75%/6 MONTHS TO 20%/YEAR;
BANNING LENDING ON CHILDREN'S AND TEMPORARY GRANTS.
BANNING LENDING ON CHILDREN'S AND TEMPORARY GRANTS.
With the Black Sash, we 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.
ReportView our report: "Social Grants: Challenging Reckless Lending"
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WebinarCheck out our report launch with discussants from the National Credit Regulator (NCR)
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PolicyWe have engaged with DSD, DTI, SASSA and the NCR to protect grantees from predatory lending
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