South African Risk Climate: Unsecured Lending a Threat

The double-digit growth in unsecured lending has become a threat to SA’s consumer credit health said Geoff Miller, CEO of TransUnion South Africa, following the release of its SA Consumer Index (CCI).

The CCI, a measure of trends in consumer credit health, has declined to a level of 50.7 for the second quarter of 2012 from a revised 54.3 for the first quarter of the year, as it reasserted a downward trend that began at the end of 2010.  Should the index dip below 50 points it would indicate consumer health has begun to deteriorate.

The double-digit growth in unsecured lending has become a threat to SA’s consumer credit health said Geoff Miller, CEO of TransUnion, one of SA’s biggest credit bureaus, following the release of its SA Consumer Index (CCI).

The CCI, a measure of trends in consumer credit health, has declined to a level of 50.7 for the second quarter of 2012 from a revised 54.3 for the first quarter of the year, as it reasserted a downward trend that began at the end of 2010.  Should the index dip below 50 points it would indicate consumer health has begun to deteriorate.

At its current level the index is “not a good omen for the economy, at the same time it’s not in panic mode, what we are basically saying is that we are right at that precipice,” stated Geoff Miller.

Source:  TransUnion