With acts you are guaranteed the latest and most up to date resource for your legislative needs. Be it enacted by the parliament of the republic of south africa, as follows. 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. The national credit act aims to increase access to credit to as many consumers as possible, while simultaneously preventing overindebtedness. Dr rob davies mp minister of trade and industry date. The consumer protection act, 2008, no 68 of 2008 was signed into law on 24 april 2009.
The national credit act 34 of 2005 the nca came into effect on 1 june 2007 and in doing so replaced the usury act, 73 of 1968 and the credit agreements act, 75 of 1980 as the founding legislation regulating consumer credit in south africa. It is for persons who take up credit in the form of a loan, lease, instalment sale, credit card or obtaining goods or services on credit, etc from a credit provider. These lations will come into effect on the date of publication. A defence debtors often raise is that the credit provider is not registered as such in terms of the act, making the particular credit agreement void, absolving the. Fully completed form 2 application for registration as a credit provider. National credit act 34 of 2005 south african government. Employeremployee loans and the national credit act. Act 36 of 1942 hirepurchase act and the credit agreements act.
This minidissertation explores the south african law of contract as influenced by the national credit act 34 of 2005. Protection offered by s 129 of the national credit act. As of 14 april 2020, the total number of confirmed cases is now 2 415. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. Employeremployee loans and the national credit act what is the effect of employeremployee loans as per the new national credit act nca threshold. The national credit amendment act 7 of 2019 intends. Before june 2006, credit law in south africa was governed by the usury act 73 of 1968 and the credit agreements act 75 of 1980. These two acts were replaced by the national credit act, which codified several basic rights that the consumer has with regard to the credit market. The act has replaced and repealed all previous legislation governing the credit industry in south africa and forms the backbone of a new era for credit.
The confusing definition of instalment sale agreements in the act. National credit amendment act 7 of 2019 south african government. This gazette is also aailable free online at za 4 no. Welcome to the official south african government online. All you need to know about the credit act as a consumer 1 foreword this booklet serves as a guide to the national credit act 342005 nca also referred to as the act. To learn more about the cpa, read our quicklaw guide. National debt advisors and the national credit act. The national credit act of 2005 to promote a fair credit. The national credit act, no 34 of 2005 national credit act promote and.
All adverse information recorded on a credit bureau must be removed once the debt has been settled. The national credit act the act applies to all consumer. It is for persons who take up credit in the form of a loan, lease, instalment sale, credit card or obtaining goods or services on credit, etc from a credit. From the definition, it would seem that instalment sale agreements over immovable property are excluded from the act.
National credit amendment act 7 of 2019 english isizulu. Employeremployee loans and the national credit act serr. Interpretation part b purpose, policy and application of act 3. Paul green, durban university of technology, south africa. Polity offers free access to south african legislation, policy documents and daily political news. Documents and information required for the application for registration as a credit provider in terms of section 40 and 41 of the national credit act 34 of 2005 please note that your application will not be processed andor considered without the following. The decision deals with the sale of shares and the application of the national credit act 34 of 2005 nca to such transactions. Micro finance south africa and the minister of trade and industry. Please wait to view pdf version or click on download for other versions.
E it therefore enacted by the parliament of the republic of south africa, as follows. The national credit act has brought about a new era of consumer credit regulation and practice, which has introduced comprehensive changes to the consumer credit. Pdf the national credit act, 2005 nca was introduced to create a more stable credit market. Ramaphosa signs controversial new debt relief bill into. The national credit act brings south africa s credit legislation on par with. To amend the national credit act, 2005, so as to provide for debt intervention. Pdf enactment of the national credit act and its implication on. National credit act the banking association south africa. Informally known as the debt relief bill, the new act aims to provide relief to overindebted. One of the mechanisms introduced by the act to counter overindebtedness, is the concept of reckless credit. Credit is one of the cornerstones of modern capitalism that lubricates the economy and promotes. Automatic removal of adverse consumer credit information.
This information is of importance to south african citizens requiring debt consolidation, debt management or require the services of. Recently, video and podcast material has been added to the site, including indepth video interviews with some of south africa s leading opinion makers. Legalwise offers assistance and information on the consumer protection act in south africa. The costs of credit and the national credit act and regulations 28 4. E it enacted by the parliament of the republic of south africa, as. The national credit act, act 34 of 2005, regulates the provision of credit in south africa. Nca national credit adviser has all you need to know. These amendments were made in response to the exorbitant growth of overindebtedness among south africa s consumers. The latest amendments to the national credit act, gazetted on friday march, carry farreaching implications for both consumers and unsecured credit providers. Arrangement of sections sections chapter 1 interpretation, purpose and application part a interpretation 1. In its formal submission to parliament on the national credit amendment bill, the banking association of south africa has said the banking sector has provided debt relief amounting to billions to indebted consumers, which causes banks to forfeit billions yearly.
In the recent constitutional court judgment of nkata v firstrand bank limited and others the socioeconomic rights institute of south africa as amicus curiae cc unreported case no cct732015, 2142016 moseneke dcj, the provisions of s 129 of the national credit act 34 of 2005 nca were, once again, put under scrutiny. To promote a fair and nondiscriminatory marketplace for access to consumer credit and for that purpose to. The national credit act, no 34 of 2005 act has gone a long way to protect the rights of consumers. Consumer protection act, no 68 of 2008 legal legal and. National credit act change summary 2015 act, changes. In terms of the national credit act the act, an instalment agreement is defined as a sale of movable property. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. This entry discusses the core elements of credit agreements as defined in the national credit act, and the consequences of concluding a credit agreement in south africa. Documents and information required for the application for. In general terms, the national credit act the act aims to transform the south african credit market and all consumer credit providers are required to comply with the act. At national debt advisors nda the national credit act 35 is our lifeblood. Application the act applies to all credit agreements within the republic involving. The aim behind the nca is to promote and advance the social and economic welfare of south africans, promote a fair, transparent, competitive.
Credit agreements in south africa are agreements or contracts in south africa in terms of which payment or repayment by one party the debtor to another the creditor is deferred. Is your sale of land in instalments subject to the. Chapter 5, consumer credit agreements, includes unlawful agreements and provisions, disclosure of credit agreements, consumers liability, interest, charges and fees, statements of account, alteration of credit agreement, rescission and termination of credit agreements. While the act aims to give effect to every consumers right to access to credit, it guards against overindebtedness. To promote a fair and nondiscriminatory 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. National credit act new affordability assessment regulations. The act sets out the minimum requirements to ensure adequate consumer protection in south africa. The national credit act is a consumer credit legislation that promotes a fair and nondiscriminatory marketplace for customers to access credit and that balances the rights of consumers and credit providers. The act introduces new rights for consumers, as well as measures that allow consumers to make informed decisions before buying goods and services on credit. President cyril ramaphosa has signed the controversial national credit amendment bill into law.
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