Check that the rates applicable to the debt
Check that the rates applicable to the debt are in line with the maximum prescribed Interest Rates and Initiation Fees as per Regulation 42 of the NCA. In determining interest and fees, note that agreements entered into before 1 June 2007 are not subject to NCA limitations and reckless lending provisions. If interest and/or fees are not in line with the guidelines, request a written explanation from the Credit Provider within 20 business days. If no reply is received or if the reply is not satisfactory, report the non compliance to the NCR for investigation and possible action. Referring this matter for investigation should not delay a recommendation of reckless lending to a Court for a ruling.
NDRC Practice NoteLast reviewed 2026-04
Every credit agreement on the file is checked against the maximum rates set by NCA Regulation 42. Interest charged above the prescribed cap is recoverable by the consumer and must be re-applied to the balance.
Anchor: NCA Regulation 42 (maximum prescribed interest rates), as updated by the Minister of Trade, Industry and Competition. Pre-1 June 2007 agreements are outside the NCA framework.
Drawn from NDRC's active case work. For your situation, see our debt counselling overview.
Cite this clause
National Credit Regulator. (2015). Annexure B — Debt Review Assessment Guidelines, clause 16.1: Check that the rates applicable to the debt. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 52.