A/HRC/43/45 people) of 95 per cent of grant beneficiaries. It is estimated that about 80 per cent of grant beneficiaries would not be able to afford the basic canasta – basic living/food expenses once the 30 per cent deduction from income is taken into account.79 65. As highlighted by the South African Human Rights Commission, the persons most vulnerable to human rights violations resulting from abusive practices are lower income groups and those in poverty. Of note is the fact that, in South Africa, total credit records of consumers rose from around 17 million in 2007 to 24 million in 2016. Furthermore, it was estimated that at least 40 per cent of workers’ monthly income was allocated to debt repayment,80 and that around 80 per cent of the salary of those working in the formal sector were subject to deductions for debt owed in 2012.81 In parts of the Russian Federation, it was reported that people were sometimes struggling to make ends meet, with as much as 83 per cent of their monthly salary allocated to loan repayments. 82 66. The impact of consumer overindebtedness can translate into a range of human rights consequences. For instance, in a series of interviews conducted in France, Germany, Hungary, Slovenia, Spain and the United Kingdom on the effect of overindebtedness, a lower standard of living and a deterioration in well-being and/or mental health were indicated as the most common consequences.83 67. Being considered a bad payer as a result of arrears or debt default can have severe consequences: there are usually moral and economic implications of a poor credit record. While some debtors have underlined the psychological burden of being considered a bad payer and the shame associated to it, others have highlighted the potential consequences for their livelihood and employment. 68. In parallel to more traditional forms of credit, the digital lending industry is fast evolving, providing services to a growing number of borrowers. In Kenya, 70 per cent of adults currently use mobile money, while only 40 per cent have a bank account.84 Personal information gathered by the “fintech” industry, including via payments and loans applications, is also a matter of concern. As lenders believe that all data are “credit data”, they set in motion complex big data algorithms that process the social media activity of millions of people trying to assess creditworthiness. 85 The use of such practices can also affect individuals in particular ways, beyond economic considerations. 69. Furthermore, financial industry technology increasingly (and aggressively) facilitates credit through digital means, including mobile application, leading to overborrowing.86 This is a highly unregulated sector. In several African countries, payday loans have been granted with interest rates at several 100 per cent.87 In this context, policies and entities aiming at protecting consumers rights and provide “financial literacy” is seen as playing a key role in mitigating the potential impact on human rights of overindebtedness and abusive lending practices. 70. As many borrowers take a number of short-term loans at the same time, they often need more credit to repay the previous one, which in real terms ends up turning short-term loans into long-term ones, but with very high interest rates. 79 80 81 82 83 84 85 86 87 David Cufré, “Reperfilar al jubilado”, Página/12, 28 September 2019. South African Human Rights Commission, “Human Rights Impact of Unsecured Lending and Debt Collection Practices in South Africa”, 2017, pp. 7 and 14. See Chantelle Benjamin, “Garnishee abuse is order of the day”, Mail&Guardian, 25 October 10/2013. Max Seddon, “Russians struggle under burden of soaring consumer loans”, Financial Times, 29 August 2019. European Consumer Debt Network, “The over-indebtedness of European households”, 6 November 2014. Eric Toussaint, “Alert on the sophistication of illegitimate debt techniques via mobile telephony”, CADTM, 8 November 2019. Kevin Donovan and Emma Park, “Perpetual Debt in the Silicon Savannah”, Boston Review, 20 September 2019. See Milford Bateman et al., “Is fin-tech the new panacea for poverty alleviation and local development? Contesting Suri and Jack’s M-Pesa findings published in Science”, Review of African Political Economy, vol. 46, No. 161 (2019). South African Human Rights Commission, “Human Rights Impact of Unsecured Lending”, p. 17. 15