Introduction Of The National Credit Act

Back to National Credit Act

The National Credit Act

  • Replaces the Usury and Credit Agreements Acts
  • Is consumer focused (initially entitled the Consumer Credit Bill)
  • Increases the availability of credit and reduces the cost of credit
  • Improves regulation of the credit environment (more inclusive)
  • Creates transparent credit processed with a focus on client education and understanding
  • Creates a healthier credit market through the introduction of reckless credit and over-indebtedness
  • Improves the collection and recovery process
  • Promulgated: 1 April 2006
  • Effective date: 1 June 2007

Purpose Of The Act

The Act aims to promote a fair and non-discriminatory marketplace for access to consumer credit through…

  • General regulation of consumer credit
    • Establish norms and standards relating to consumer credit
    • Regulate credit information
    • Promote responsible credit granting
      • Prohibit reckless credit granting
      • Provide for debt re-organisation in cases of over-indebtedness
    • Promote a consistent enforcement framework relating to consumer credit
    • Provide for registration of credit bureaus, credit providers and debt counselling services
  • Improved standards of consumer information
    • Prevent certain unfair credit and credit marketing practices
  • Promotion of black economic empowerment and ownership in the credit industry
  • Establishing the National Credit Regulator and National Consumer Tribunal

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