NATIONAL CREDIT ACT

What is the National Credit Act?

The National Credit Act aims to protect consumers taking credit or entering into consumer credit transactions. In addition, The Act makes provision for the control and regulation of all credit transactions, including mortgages, credit cards, overdrafts, micro-loans and pawn broking transactions. The Act also regulates all institutions that provide consumer credit, including Black Pay and the banks. Provision is made in the Act for the registration of debt counsellors and debt restructuring for over-indebted consumers.

How does the National Credit Act apply to me?

The National Credit Act applies to credit agreements with all consumers, and to entities such as close corporations, companies, partnerships and trusts, whose asset value or annual turnover is below a prescribed threshold (currently R1 million).

How does the National Credit Act affect me?

You may be required to provide additional information when applying for credit in order for an affordability assessment to be performed. You’ll find that documentation affecting the granting of credit or extension of credit is written in plain language and that a clear breakdown of costs is provided. Your credit provider is required to make sure that you understand the risks, obligations and costs associated with your credit application.

Will there be any changes to processes and forms when applying for credit?

We will require additional information when assessing your loan application including details of all your income and expenditure in order to perform an affordability assessment. If you are married in community of property, you will require the written consent of your spouse before you can apply for a loan.

If you can’t find the answer to your question here, please contact us at info@blackpay.co.za our specialist team members will respond to your enquiry.