|
WHAT
IS THE NATIONAL CREDIT ACT & HOW DOES IT AFFECT YOU?
The National Credit Act (NCA) came into operation on 1 June 2007. The NCA was enacted to protect Consumers over a broader-spectrum than normally the case with Consumer credit legislation. It is a well-known fact that many South Africans have been enticed in recent years to enter into Credit Agreements that they could not afford and the NCA goes a long way to curb this. The Act comprehensively regulates the credit industry in South Africa.
The NCA makes provision for the prohibition of unfair credit and credit marketing practices and the promotion of responsible credit granting. It makes provision for debt review and debt re-arrangement in case of over-indebtedness. The NCA also regulate Credit Bureaux, Credit Providers and Debt Counsellors, and governs the National Credit Regulator and the National Consumer Tribunal.
The NCA intended to increase fairness, nationality, predictability, competitiveness and choice in the credit industry.
The NCA makes provision for the services of debt counsellors. When interpreting the NCA and relevant Regulations promulgated in terms of the NCA, the debt counsellor can be in short defined as:
- a person
appointed to
- receive
an application for debt review of an alleged over-indebted consumer
- verify
all relevant information
- assess
all relevant information, make a
- determination
based on information
- issue a fair proposal for debt-restructuring to the Magistrate’s Court, and
- issuing of a clearance certificate
|
|
