The National Credit Act (NCA), Act No. 34 of 2005, is the South African law that prescribes rules and regulations for the credit industry. It sets the groundwork for dealing with over-indebtedness and establishes the debt counselling process.
Key provisions of the NCA include:
• Consumer protection against reckless lending
• Right to apply for debt counselling when over-indebted
• Regulation of credit providers and debt counsellors
• Guidelines for interest rates and fees
The NCA aims to promote a fair and non-discriminatory credit market and to protect consumers from over-indebtedness.