Page 47 - Profmark BSA Guide 2025

NATIONAL CREDIT ACT, 34 OF 2005

The National Credit Act (the NCA) became fully operative on 1 June 2007 and is
designed to protect the consumer against unlawful credit provision. The National
Credit Regulator is responsible for the registration of industry participants, research,
public education, investigation of complaints and enforcing NCA compliance.
The NCA creates a responsibility on credit providers to refuse to give the
consumer (borrower) credit if he cannot afford it. The NCA generally applies to
every written credit agreement between parties dealing at arm’s length and made
in, or having effect in, SA. A credit agreement is defined as a credit facility, credit
transaction, credit guarantee, or any combination of the three. The Regulations of the
NCA specify the maximum interest rates and transaction fees that can be charged on
credit agreements or loans.
Registration of Industry Participants
All industry participants (credit providers, credit bureaux and debt counsellors) must
be registered with the Regulator. If they have not registered as such, they cannot
extend credit or trade as a credit provider.
Further Consumer Rights
The right to apply for credit, to be protected against discrimination in the granting
of credit, to be informed of the reason why the application for credit was refused (if
requested), to receive a credit agreement in plain, understandable and an official
language, and to receive a copy of the credit agreement and a replacement copy
when requested.

The National Credit Amendment Act, 7 of 2019 provides for additional protection
to low-income consumers from over-indebtedness by either re-arranging,
suspending or extinguishing (partially or wholly) their unsecured credit debts
during a period of four years from the commencement date, which can be
extended.

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