What is the National Credit Act? And what does it benefit you?
The National Credit Act (NCA) was signed in 2005. It is legislation that was brought in as an effort to give the credit market of South Africa an overhaul. This act was formed to regulate South African lending with safe and responsible practices. The NCA also has it in mind that banking services should be more accessible to South Africans.
The NCA is enforced by a regulator called the National Credit Regulator (NCR). If you want to know more about how the NCR works click here. (link with the article “what does the National Credit Regulator do for you?”)
Why was there a need for the Act?
The credit market in South Africa before the year 2005 was a very complex environment. It left many consumers in danger of financial hardship because of the lack of regulation.
So what does the NCA do for you?
It simplifies and standardizes credit agreements. The Act can help you to steward the health of your credit to an optimum level. Please remember that the Act can only help you as far as you work along with legislation. Here follows some benefits that may come your way:
- Illiterate consumers are protected by the NCA. According to legislation consumers must be ushered through the process of applying for credit. No longer can an illiterate consumer be exploited by irresponsible borrowing.
- A credit provider may not discriminate unfairly against you. They may not refuse your application for credit based on unrelated information. If a credit provider should refuse your application they must inform you why they did so.
- The National Consumer Tribunal (NCT) was established by the Act. The NCT exists to adjudicate over issues regarding consumers’ complaints. Consumers can settle disputes with credit providers at the NCT.
These are but a few things the Act will benefit you. Should you ever be in a pickle pertaining to credit disputes make sure to reach the National Consumer Tribunal here.
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