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The compliance crisis: Unrecoverable fees proposed by Department of Home Affairs threaten legal credit access and progress towards financial inclusion
November 25, 2025
The Compliance Crisis
Unrecoverable fees proposed by the Department of Home Affairs threaten legal credit access.
What is the compliance crisis?
Proposed fees threaten legal credit access and progress towards financial inclusion.
What are the proposed fees?
The Department of Home Affairs proposes an increase in identity verification fees for private sector companies.
Why are the fees unsustainable?
The proposed fees are non-recoverable costs for credit providers, impacting their sustainability.
What are the consequences?
Unsustainable costs may lead to lenders withdrawing from the market, pushing borrowers towards illegal lending.
What are the key issues?
Rising compliance costs, stagnant fee framework, shrinking access to formal credit, and the rise of illegal lending.
What is the call to action?
Review credit fee framework, ensure collaborative response, and suspend the DHA fee increase.
