What is the National Credit Act (NCA)?

The National Credit Act (NCA) came into effect 1 June 2007 and was introduced to:

• promote a fair and non-discriminatory marketplace for access to consumer credit and to provide for the general regulation of consumer credit and improved standards of consumer information;
• promote black economic empowerment and ownership within the consumer credit industry;
• prohibit certain unfair credit and credit-marketing practices;
• promote responsible credit granting and use and prohibit reckless credit granting;
• provide for debt reorganisation in cases of over-indebtedness;
• regulate credit information;
• provide for registration of credit bureaus, credit providers and debt-counselling services;
• establish national norms and standards relating to consumer credit;
• promote a consistent enforcement framework relating to consumer credit; and
• establish the National Credit Regulator and the National Consumer Tribunal.