The National Credit Act No. 34 of 2005 (NCA) is a law that came into effect on 1 June 2007 to protect the rights of consumers by regulating the credit market, as well as to ensure that credit providers handle business more responsibly.
The NCA affects everyone who is a consumer of credit, which means that if you have a store account, a credit card, motor vehicle finance, a home loan or a personal loan, the NCA applies to you. It replaces the Usury Act, the Credit Agreements Act and the Exemption Notice to the Usury Act (which gave legal status to the Micro Finance Regulatory Council).
To find out more about the NCA, visit www.ncr.org.za
How the National Credit Act protects YOUR rights:
Because this Act is in place to protect your rights as a consumer, there are certain procedures that are followed to ensure this is done correctly, and in the consumer’s best interests:
The NCA places a greater responsibility on credit providers to ensure that you can afford the credit they’re providing before you commit to it.
It requires you, as a consumer, to act responsibly by giving the credit provider a detailed description of your income and a list of your monthly expenses when you apply for credit.
With this information, the credit provider is required by law to objectively establish whether or not you are financially eligible to take out a loan or make a purchase based on credit.
The NCA applies to every kind of credit available in South Africa. So no matter what kind of credit agreement you’re entering into, the aim of the NCA is to ensure that your rights are protected as it regulates all credit providers.
At DirectAxis, we’ve always had our customers’ best interests at heart. Which is why we’re committed to promoting responsible lending – to ensure your financial well-being. This is why we are compliant with the National Credit Act, and you can take a loan from us at any time with complete confidence and peace of mind.
Click here to find out more about a Personal Loan from DirectAxis.
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