National Credit Act: Debt Rights Every South African Should Know
A plain-English guide to over-indebtedness, reckless credit, debt counselling, enforcement and credit records.
What the NCA is designed to do
The National Credit Act regulates consumer credit, promotes responsible lending, addresses over-indebtedness and sets rules for credit information and debt-counselling services.
Responsible lending and affordability
Credit providers must consider affordability before granting credit. Consumers also need to provide truthful information during an application.
Over-indebtedness and debt counselling
The Act provides a formal route for over-indebted consumers to be assessed and, where appropriate, have obligations restructured through the required process.
Reckless credit
Reckless credit is a defined legal concept. It is not simply any loan that later becomes hard to pay. Evidence and timing matter.
Debt enforcement
Enforcement has rules, including notices and timing requirements. Do not ignore legal letters. The earlier you identify the document and date, the better.
Credit information
Consumers can check credit reports and dispute factual errors. Keep documents that support any correction request.