The Credit Act

Question 1

What is the reason

Answer 1

Introduced to provide credit providers and consumers with guidelines relating to their rights and responsibilities

Question 2

What is a credit provider

Answer 2

Is a business or person who lends money to another person or business

Question 3

What is a credit applicant

Answer 3

Is a business or person who needs to borrow money

Question 4

What is the nature and purpose

Answer 4

• To discouraging reckless credit granting by credit providers and contractional default by consumers
• promoting equity in the credit market
• encouragers responsible borrowing

Question 5

The the right of credit providers

Answer 5

• applies for judgement against the consumer
• the consumer must inform the credit provider of any change concerning the consumer residential or business address
• where there is no debt review application the credit provider may take legal action again the consumer if the consumer has been in default for at least 20 days

Question 6

What is the right of credit applicants

Answer 6

• the right not to be discriminated against unfairly
• the right to reason for credit being refused
• the right to information in an official language

Question 7

What is remedies

Answer 7

-the consumer can rely on the right afforded by the National credit act
Eg - the credit agreement may not contain unlawful provisions
-the consumer is in entitled to apply for debt review

Question 8

What is the impact on the purchasing fuction

Answer 8

• strict credit control measures have lead to a reduction in available credit
• the purchasing function cannot depend on obtaining credit anymore