The National Credit Act and the National Credit Regulator

You may have heard the names of each, but are not certain what they are. Here is a short
summary of each:

The National Credit Act (NCA)

A new Act was made into law in 2007. It is called the National Credit Act (the NCA). The aim
of the Act is to regulate how credit is granted, who can give and get credit and what can be
done if people have problems paying for their debt.

An important part of the Act includes a section aimed at assisting those who are over-
indebted. Section 86 of the Act covers what to do if a consumer has too many debts, too
many obligations and not enough money to pay for them all. It also mentions debt
counselling, which is also called debt review.
Debt Counselling is advice about a consumer’s debt from a qualified debt counsellor. A Debt
Counsellor is registered with the National Credit Regulator or NCR.

The National Credit Regulator (NCR)

The National Credit Regulator was created by the National Credit Act. The NCR registers
those who offer credit, also called credit providers. They also register debt counsellors who
offer debt review services. In addition, they register other parties that are involved in the
credit industry, such as credit bureaus and payment distribution agents.

What is the difference?

The NCA’s main aim is to avoid reckless lending by credit providers and to help prevent
over-indebtedness of consumers.
The NCR is the regulator of the above Act. They take responsibility for enforcing the Act in
South Africa. The NCR provides all the information regarding debt counsellors, credit
providers, credit bureaus and ADR (alternative dispute resolution) agents. In addition, they
can help borrowers with different types of possible disputes that can come from loan
complications.

What does it mean for me?

The NCA protects the consumer who enters a credit agreement. The NCR is the regulator of
the Act. In other words, they ensure that the rights of the consumers are protected. They
regulate the practices of credit providers to ensure credit granting, credit use as well as
effective redress.

Need more information on the NCA and debt counselling? Speak to a friendly consultant at
One Debt today.