What is the National Credit Act?

The National Credit Act ('NCA'), 34 of 2005 was introduced by the government of South Africa to better regulate the credit industry and to protect consumers.

The NCA makes provision for:

• prohibition of of unfair credit and credit marketing practices;
• promotion of responsible credit granting;
• prohibition of reckless lending;
• provision of debt review and rearrangement mechanisms in cases of over-indebtedness;
• regulation of credit bureaus, credit providers and debt counsellors.

The NCA also governs the establishement of the following statutory bodies:

• The National Credit Regulator
• The National Consumer Tribunal

The National Credit Act repeals and replaces the Usury Act, the Exemption Notice and the Credits Agreements Act.