NATIONAL credit act


The National credit act(NCA)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 


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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