The National Credit Act (NCA) was first established and then signed in 2005 to protect a
consumer who enters into a credit agreement with a credit provider. A credit provider is
someone, or a business, that provides their services to you on credit. An example of a credit
agreement could be a credit card, store card, personal loan and so on. The National Credit
Act applies to all credit agreements in South Africa between both consumers and credit
providers.

The Purpose of the NCA

The purpose of the National Credit Act is to promote a fair and non-discriminatory market
place for access to consumer credit. It also stands to standardise or regulate consumer
credit and improve the standards of consumer information. Another purpose of the NCA is
to prohibit certain unfair credit and credit marketing practices, as well as promote
responsible credit granting and use. A point to bear in mind is that the NCA aims to prohibit
reckless credit granting. The NCA aims to provide for debt re-organisation in the case of a
person’s over-indebtedness, regulate credit information and establish recourse for unfair
credit practices.

Consumer Rights Protected in the NCA:

As a consumer, you also have certain rights that are protected by the NCA. They are:
 to apply for credit
 to be protected against discrimination in the granting of credit
 to be informed, if you should ask, why credit has not been granted
 to receive a free copy of your credit agreement
 to receive a credit agreement in plain and simple language
 to have your personal and financial information treated confidentially at all times
 to understand all fees, costs, interest rates, the total instalment and any other
details, and to request clarity should you not understand
 to say no to increases on your credit limit
 to decide whether you want to be informed about products or services via
telephone, SMS, mail or e-mail campaigns

 to apply for debt counselling should you be overwhelmed by debt
The National Credit Act is an effective mechanism to ensure protection for the consumer.
Knowing about your rights and responsibilities goes a long way in helping you make an
informed decision, especially concerning finances and debt.
For more details about the National Credit Act, speak to a consultant at One Debt today.