National Credit Act

Question 1

Purpose of NCA

Answer 1

Promote the responsible
granting of credit by credit
providers to avoid high
levels of debt for consumers

Question 2

Positive Impact of NCA

Answer 2

Protection against non-
paying customers which can
lead to huge losses.
More customers through
credit sales.

Question 3

Negative Impact of NCA

Answer 3

Businesses that reckless
credit granted, may not
recover the debt not.
Businesses must do
everything in their power to
collect debts, before
customers are blacklisted

Question 4

Compliance with NCA

Answer 4

Register the business with the
National Credit Regulator
(NCR).
Run a credit check with a
registered credit bureau

Question 5

Punitive Measures for NCA

Answer 5

The business license can be
revoked.
NCR can impose a fine.

Question 6

Discriminatory Conduct / Acts against NCA

Answer 6

Reckless granting of credit and
failure to explain the credit
contract to consumers.