The National Credit Amendment Act
The National Credit Amendment Act (NCAA) is thought to have the most significant impact on business since the National Credit Act of 2005.

At the end of 2014, the Amendments to the National Credit Act were published and underwent a draft and feedback process to eventually come into effect on 13 March 2015.

The Regulations address a number of matters, including:
  • The continuous removal of paid-up adverse information
  • Newly introduced affordability assessment criteria
  • Changes in credit bureau data retention periods
Furthermore, the NCAA also provides for changes to the debt counselling process and the requirements for obtaining clearance certificates.

The amendments impact several aspects for the Credit Providers and their agents (Dealers).

The main aspects are:
  • How to conduct affordability
  • Required documents
The Dealer needs to:
  • Ensure that the application is fully completed and truthfully so, to the best of his/her knowledge
  • Ensure the consumer understands the obligations in terms of the credit agreement.
The Dealer must also explain the following to the customer:
  • Cost of credit
  • Importance of repayments on time
  • Consequences of default
  • Right to a debt counsellor
The NCA Card examinations have been adjusted accordingly and new students will receive training that will include the new amendments.

Information session on amendments
Current NCA-cardholders will not need to rewrite the NCA exams, but need to attend an information session on the amendments. After attending such a session, this will be added to their names on the national register – as kept by the Institute of Bankers.

Banks want to take government to court
It has emerged that banks and credit providers are threatening to take government to court over the new guidelines to determine creditworthiness. Click here to read more.
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