The National Credit Act is an act that became effective in law in June 2007 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 the consumer credit industry;

to prohibit certain unfair credit and credit-marketing practices; to promote responsible credit granting and use and for that purpose to prohibit reckless credit granting; to provide for debt re-organisation in cases of over-indebtedness; to regulate credit information; to provide for registration of credit bureaux, credit providers and debt counselling services; 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 to provide for related incidental matters.

 

The National Credit Act is there to protect Consumers rights by :

• Controlling the Cost of Credit
• Preventing consumers over committing themselves financially
• Preventing reckless credit practices
• Preventing exploitation by Credit Providers and Debt Collectors
• HELPING consumers manage their debt responsibly by prescribing assistance to consumers who are OVER COMMITTED FINANCIALLY.