What is the main purpose of the National Credit Act 34 of 2005?
What is the main purpose of the National Credit Act 34 of 2005?
to establish national norms and standards relating to consumer credit; to promote a consistent enforcement framework relating to consumer credit; to establish the National Credit Regulator and the National Consumer Tribunal; to repeal the Usury Act, 1968, and the Credit Agreements Act, 1980; and.
What is the National Credit Act summary?
The National Credit Act (NCA) was introduced “to promote and advance the social and economic welfare of South Africans, promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market and industry, and to protect Consumers.”
What are the three purposes of National Credit Act?
The Act has three main purposes, in terms of section 3; to promote and advance social and economic welfare of South Africans; to promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market and industry, and to protect consumer.
Who does the NCA apply to?
Section 40(1) of the NCA provides that a person must apply to be registered as a credit provider if the total principal debt owed to that credit provider exceeds the prescribed threshold, which has been amended to be any amount greater than Nil.
Who is regulated by NCA?
What is the NCA? The National Credit Act (NCA) was signed into law by the President on 15 March 2005, and governs the assessment, application and maintenance of credit granted by a credit provider to a consumer within the Republic of South Africa.
Does NCA apply to all credit agreements?
The NCA applies to every credit agreement having effect in South Africa (including foreign inward loans) except where: In terms of section 4(1)(b) of the NCA, the credit agreement is a large agreement (which large agreement is currently above R250.
What is the difference between consumer protection act and the National Credit Act?
If there is a defect in the quality of the goods or the service the Consumer Protection Act will provide the appropriate remedy, but if it is about the credit agreement itself, then the National Credit Act will apply.
What are the consumer rights in terms of the National Credit Act?
The Act entrenches a number of fundamental rights of consumers in the credit market, including protection against discrimination in credit granting, the right to be given reasons for credit being refused, or discontinued, the right to information relating to the agreement, in an official language, and in plain and …
What is the impact of the National Credit Act?
An overall analysis revealed that the application of the NCA had a positive impact on the affordability of home loans in the research area and that compliance with NCA, when granting credit, resulted in the reduction of reckless lending, a decline in the level of consumer indebtedness and a reduction in payment default …
What is the National Credit Act 34 of 2005?
34 of 2005. The National Credit Act 34 of 2005 intends: to promote a fair and non-discriminatory marketplace for access to consumer credit and for that purpose to provide for the general regulation of consumer credit and improved standards of consumer information;
What is Act 34 of 2005 all about?
34 of 2005. The National Credit Act 34 of 2005 intends: to promote a fair and non-discriminatory marketplace for access to consumer credit and for that purpose to provide for the general regulation of consumer credit and improved standards of consumer information; to promote black economic empowerment and ownership within
What is the history of credit law in South Africa?
Until recently, the two most important Acts governing the credit law in South Africa were the Usury Act 73 of 1968 and the Credit Agreements Act 75 of 1980. However, in June 2006, these two Acts were repealed to make way for the National Credit Act 35 of 2005.
What are the rules of the National Credit Act?
The NCA differentiates between small, intermediate and large agreements depending on monetary thresholds stipulated in the National Credit Regulations. Different rules apply to each category, such as the requirements regarding the contents of the agreement, protection of juristic persons and settlement of a debt by advance payment.
