NCA and NCR are often used interchangeably. One can be forgiven for thinking that these
acronyms are a part of the spy world and not knowing exactly what they mean. Read on to
find out more:
The National Credit Act (NCA)
In 2007, a new Act was made into law. Called the National Credit Act (the NCA), its aim is
two-fold – to protect consumers and to promote a responsible credit market. As such, it
provides the necessary guidelines on how credit is granted, who can give and get credit
and what can be done if people have problems paying for their debt.
In addition, 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 much debt, too many
obligations and insufficient money to pay for them all. It also refers to debt counselling. This
is also called debt review.
Debt Counselling is proactive advice regarding a consumer’s debt from a qualified debt
counsellor. A Debt Counsellor must be registered with the National Credit Regulator( NCR).
The National Credit Regulator (NCR)
The National Credit Act created The National Credit Regulator. The aim of the NCR is to
register organisations that offer credit, or 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. In a
nutshell, they make sure that all the procedures are lawfully and correctly run.
Is there a 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 NCA. 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. Furthermore, they can help borrowers with different types of possible disputes that can come from loan complications.
How does it benefit me?
The NCA protects the consumer who enters a credit agreement. The NCR is the regulator of
the Act. This means that they make sure that the rights of the consumers are protected.
They ensure the practices of credit providers to ensure credit granting, credit use as well as
effective redress follow the correct procedures and are ethical.
Looking for further information on the NCA and debt counselling? Speak to a friendly
consultant at One Debt today.