National Credit Act

The National Credit Act No 34 of 2005 was passed by Parliament on the 10th of March 2006 and aims to reduce reckless credit behaviour, both by credit providers and consumers and to reduce the level of over-indebtedness in South Africa.

The National Credit Act aims to reduce the level of over-indebtedness in South Africa, enhances consumer rights and education, and regulates the provision of credit.

The NCA also provides for consistent treatment of all consumers, as well as readdresses the power balance between credit providers and consumers. Lastly, and most importantly, the NCA promotes responsible borrowing and prohibits reckless lending.