The National Credit Act No.34 of 2005
The Act was passed into law by Parliament and signed by the President in March 2006. This aims to protect consumers taking credit or entering into consumer credit transactions.
In 1 June 2007 the act began to apply fully and what these 116 pages of legal terminology (not counting the regulations!!) are aiming to achieve is:
- To promote a fair and non-discriminatory marketplace for access to consumer credit,
- to provide for the general regulation of consumer credit and ensure 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 (banks, etc) and use (you the consumer),
- to provide for debt re-organisation in cases of over-indebtedness,
- to regulate credit information,
- to provide for registration of credit bureaux, 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.
Keep informed to ensure your rights are not being infringed upon!
0 Responses to “The National Credit Act”