The National Credit Regulator, known in South Africa as the NCR, was established as the regulator under the National Credit Act. They are responsible for the guidance and supervision of the South African credit industry and are tasked with the development and upholding of an accessible credit market for lenders and borrowers alike.
Let’s take a look at the roles the National Credit Regulator plays within each:
- The NCR is responsible for the registration of credit providers, credit bureaux and debt counsellors, and monitor the conduct of these parties.
- Educate and create awareness of the protection which the Act offers.
- Advise the government on policy and legislations.
- Enforce the Act and take action against institutions that are in breach of any legislation.
- Research the credit market and monitor borrowers’ access to loans.
- Supervising the cost of credit to identify factors that may undermine access to credit.
- Protecting the consumer from fraudulent activity.
- Receive and investigate complaints and ensure that consumer rights are protected.
The NCR Clamps down on Reckless lending.
The NCR is well known for making great progress in clamping down on lenders who violate the National Credit Act by making use of abusive methods of collecting outstanding debts. Retaining consumers’ identity documents, bank cards and pin numbers, although illegal, is still widespread amongst certain lenders who try to evade the law. The NCR protects consumers from excessive interest being charged, pre-agreement statements and quotations not being provided, a lack of proper affordability studies being performed, and unlawful provisions being included in the credit agreements.
Borrowers can take rest in the fact that the NCR is well able in enforcing responsible lending from all financial institutions in South Africa. One must always ensure to look for proper NCR registration certificates of lenders. This can be found on the NCR website. The NCR also sets a maximum interest rate that any lender may charge and thus ensures safe and responsible lending practises within our country.
Here at Fincheck, we only deal with trusted financial institutions as we’ve got your best interest at mind and want you to get the best loan possible!