National Credit Act
The National Credit Act (NCA) is intended to protect consumers who take on credit or who enter into consumer credit transactions. It helps Government manage the way credit is extended to consumers. They can now promote a more responsible way of granting credit, regulate what credit costs and keep tabs on institutions trying to charge exorbitant interest rates. A very important provision of the NCA is that it provides for the registration of debt counsellors and allows for the restructuring of over-indebted consumers’ debt.
The NCA also regulates all institutions that extend credit to consumers. This includes banks, retailers, pawnbrokers and micro-lenders. In addition, the NCA regulates and controls mortgage and credit transactions, credit cards, overdrafts and pawnbroking and micro-loan transactions.
Two bodies were established under the NCA: the National Credit Regulator (NCR) and the National Consumer Tribunal (NCT). The NCR is intended to carry out research, education, industry participant registration and policy development. It ensures enforcement of the NCA and investigates complaints. The NCT is an independent body under the NCA; it issues fines for contraventions of the NCA and hears cases that arise from non-compliance with the NCA.
Under the NCA, institutions are obliged to properly inform consumers. You have to be told what interest you will be paying and what fees you will be charged. Bond originators are not allowed to charge a fee for their services. Retailers are also no longer allowed to increase your credit facility without instruction from you.
The NCA regulates and controls the credit bureaus too. The credit bureaus are required to monitor and keep control of the personal details, lending habits and credit records of all South Africans who have credit, and ensure that this information is correct and accurately recorded.
The National Credit Act is widely credited for saving our banking sector from complete destruction as the worldwide credit crisis hit.
Consumer Assist:
- provides consumers with simple, easy to understand information on the debt review process, and
- introduces consumers to experienced Debt Counsellors who have agreed to adhere to the Consumer Assist code of conduct:
- to act in the consumers' best interest
- to comply with NCR fee structure
- to offer service excellence
- to always act with integrity
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 For more information contact our call centre on 0861 21 22 23.
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