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And Capital One is moving to expand significantly in this debt-driven consumer credit sector.
Payday lenders need different treatment from the established home credit sector.
The Office of Fair Trading has recently reviewed the high-cost credit sector.
Absa said the deal would help strengthen its position in South Africa's retail credit sector, as well as allow the company to build a closer relationship with Edcon.
Of all the lenders the Consumer Credit Counselling Service sees, the home credit sector has frequently proved to be the most forbearing.
This fear is so pervasive that it has brought the credit sector to a virtual shutdown, even to borrowers with good credit.
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Analysis confirms an interaction effect between informal and formal credit sectors in which informal credit positively influences accessibility to microcredit programs.
The cumulated loss in the mortgage-credit sector over 2007-13 was below 1% of lending.
He said the review must look at the credit card sector.
However, the credit union sector is now regulated by the Prudential Regulation Authority, which also polices banks and building societies.
So what can be done to increase membership and therefore the amount of capital in the credit union sector?
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CEO of Professional Science Editing for Scientists @ prosciediting.com