What does the National Credit Act regulate?

What does the National Credit Act regulate?

The National Credit Act established the National Credit Regulator (NCR) to regulate the credit industry and ensure that credit providers comply with the NCA. In addition, the NCR is responsible for investigating and evaluating Consumer complaints about alleged contraventions of the NCA by credit providers.

Who is exempt from the National Credit Act?

For example, the NCA is not applicable when the credit consumer is a juristic person whose asset value or annual turnover equals or exceeds the threshold (currently R1 000 000,00), as determined by the Minister.

How can businesses comply with the National Credit Act?

Business should register with the National Credit Regulator. Submit an annual compliance report to the National Credit Regulator. Obtain credit records/checks of clients before granting loans. Conduct credit affordability assessments to ensure that clients are able to meet their obligations on time.

Who does the NCA apply to?

Application of the NCA In terms of section 4(1) of the NCA, the NCA applies to every credit agreement between parties dealing at arm’s length and concluded, or having an effect within, in South Africa, subject to section 5 & 6 of the NCA.

Who needs to register with the National Credit Act?

In terms of section 40(1) of the National Credit Act a person or entity must apply to be registered as a credit provider if the total principal debt owed to that credit provider, under all outstanding credit agreements, other than incidental credit agreements, exceeds the threshold prescribed in terms of section 42 (1) …

Who is protected by the Consumer Credit Act?

It protects consumers against purchases that are not as described by the seller or from transactions that have been deemed misleading that leave the buyer unfairly out-of-pocket.

Which consumer rights are guaranteed by the NCA?

The Act entrenches a number of fundamental rights of consumers in the credit market, including protection against discrimination in credit granting, the right to be given reasons for credit being refused, or discontinued, the right to information relating to the agreement, in an official language, and in plain and …

When must a person apply to be registered as a credit provider?

When must you register with the NCR?

A regulatory requirement of the Credit Act is that a person must register as a credit provider with the National Credit Regulator (“NCR”) if the total principal debt arising from the credit agreement exceeds the threshold prescribed by the Minister of Trade and Industry from time to time.

How does the National credit Act protect consumers?

What are three purposes of National Credit Act?

The Act has three main purposes, in terms of section 3; to promote and advance social and economic welfare of South Africans; to promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market and industry, and to protect consumer.

How do I clear my name after debt review?

What must I do to remove the debt review status from my credit report? A: Request a clearance certificate from your debt counsellor and submit it to the credit bureau. The credit bureau will then remove the debt review status from your credit report.

Does debt expire in South Africa?

South Africa has different laws which specify prescription periods, for example, the Prescription Act says that contractual and delictual debts extinguish after three years from the date when it became payable (due).

Can a creditor refuse debt review?

Will creditors continue pursuing me for payments? Your creditors shall, according to the National Credit Act, stop pursuing you when you’ve been placed under debt review. They may contact you but they may not take legal action.

What happened to Regulation 17 of the Consumer Credit Act?

(Regulation 17 deleted and replaced by Schedule 2 of Government Notice R1209 in Government Gazette 29442 dated 30 November 2006) 18. Maintenance and retention of consumer credit information by credit bureaux

What are the guidelines of the National Credit Regulator?

(d) any guidelines published by the National Credit Regulator proposing evaluative mechanisms, models and procedures in terms of section 82 of the Act, (9) Any arrangement made by the debt counsellor with credit providers must be reduced to writing and signed by all credit providers mentioned, the debt counsellor and the consumer.

How to appoint an inspector under the National Credit Regulator Act?

12. Appointment of inspectors and investigators The Chief Executive Officer of the National Credit Regulator must issue an inspector or investigator appointed in terms of section 25 of the Act with a certificate prescribed in Form 11. 13. Notice to unregistered persons who are conducting registered activities

What is the purpose of the National Credit Act 34?

The National Credit Act 34 of 2005 intends: to promote a fair and non-discriminatory marketplace for access to consumer credit and for that purpose to provide for the general regulation of consumer credit and improved standards of consumer information;