You may have heard of the National Credit Act (NCA) of South Africa often used in the context of debt. So, to help explain this Act, we’ll discuss what exactly the NCA is and how it can help South Africans get out of debt.
Why the National Credit Act Was Created
Created in 2005, the NCA has the aim of protecting South Africans from predatory credit and lending practices. For example, this includes protection against asset repossession, deceitful lending conditions, and “loan flipping”.
While it grants protection against bad loans, the NCA also promotes fairness and transparency with the issuance of loans. Therefore, the NCA legally requires credit providers to follow standard practices to make credit more accessible for the average consumer.
Finally, the NCA additionally protects South Africans from themselves. For instance, in the case of a consumer taking on an unmanageable amount of debt, the Act makes it easier to get out of this situation through Debt Review.
Legal Rights under the NCA
As the NCA aims to protect South Africans from bad debt, it gives certain legal rights to all consumers:
- To apply for credit
- No discrimination based on identity, gender, race, etc.
- Provision of reasons for credit denial
- Access to information in an official South African language
- Information in understandable and simple language
- Receival of documents
- Protection of consumer credit rights
The Perks of the NCA
As previously mentioned, one of the NCA’s major benefits is that it gives over-indebted South Africans the opportunity to go into Debt Review. This involves a debt counsellor going over existing debt and then negotiating with credit providers for lowered interest rates. Most importantly, going into Debt Review grants South Africans protection against debt collectors throughout the duration of the process, giving crucial breathing room for getting on top of debt payments.
Take Advantage of the National Credit Act Today
Debt Help offers Debt Review, Debt Counselling, and Debt Consolidation services that will help you get out of debt. Take advantage of your legal rights and become debt-free today!