National Credit Act (NCA) Debt can spiral out of control. A responsible bank and a responsible borrower can make sure that doesn't happen. The National Credit Act is there to regulate responsible lending. The National Credit Act (NCA)The National Credit Act is designed to create a fair and non-discriminatory credit marketplace in South Africa . It replaces the Usury Act, the Integration of Usury Laws Act 1996 and the Credit Agreements Act 1980. What does the National Credit Act mean for you?- Credit agreements must be easy to understand and must be available in the language of your choice.
- Quotes must be given on all credit agreements, and are binding for 5 days
- Full disclosure must be provided of the principal debt, service fees levied and interest charged in terms of the credit agreement.
- You have the right to your credit information held by the Credit Bureau.
- Reasons must be provided if your credit application is declined.
- A last resort debt counselling process is available should you be unable to repay a loan.
- A National Consumer Tribunal will function as an informal court to resolve any credit transaction, credit bureau and credit provider related issues.
- You are protected from unfair treatment in a credit agreement .
- Education will help you make informed choices, borrow responsibly and within your means.
What does the National Credit Act mean for your credit provider- The promotion of a fair credit market.
- Prevention of reckless lending
- Regulation of re-approved/automatic limit increases
- Regulation of interest and fees on all agreements, including micro-loans, overdrafts and credit cards
- Advertising and marketing must contain prescribed information.
- Credit sales at a person's home or work are strictly limited
- The National Credit Regulator comes into effect 01 June and will be responsible for monitoring of credit providers and compliance to the Act.
When does the Act come into effect?01 June 2007 How does this affect Go Banking?Go Banking is a registered credit provider and supports the National Credit Act. Keeping you informedGo Banking aims to keep you informed through a variety of channels and we have a series of credit-related tips to help you to manage your debt. Examples of these tips are available at the bottom of this page. How will the NCA affect my Go Account and Credit Card from 01 June 2007?If you have an existing overdraft and or Go Banking Credit Card the NCA will not affect you. However, should you make changes to your existing overdraft and or credit card (i.e. increase credit limit) the new NCA requirements will apply.
If you don't have one of the credit products offered by Go Banking and wish to apply after 01 June 2007, your application will follow the new requirements stipulated in the NCA. - Don't buy on impulse
- Don't miss a repayment – rather make an arrangement with your creditor to pay later.
- Put any spare cash into paying off your debt early and try to contribute monthly to a savings or investment account
- Reduce the balance owing on the loan with the highest interest rate first.
- Don't move short-term debt (e.g. credit card) to long-term debt (e.g. home loan) - you will pay more interest in the long-term.
- Never apply for debt in your name on someone else's behalf, or stand surety for someone else. That person may not be able to repay the debt, which could leave you with a bad credit history.
- Live within your means to ensure you do not over-commit yourself financially.
- Know your credit rating and update any incorrect information at the credit bureaus.
More informationIf you would like to find out more about the National Credit Act contact Go CCC on 0860 654 222. Other important contact info: The National Credit Regulator
0860 627 627
www.ncr.org.za The Banking Ombudsman
0860 800 900
www.obssa.co.za
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