Topic 1:National Credit Act

Question 1

Purpose of the NCA?

Answer 1

• Promotes the intrests of SA consumers
• Promotes resposible granting of credit by credit providers
• Ensures that credit is equally availible to all qualifying consumers

Question 2

Positives of NCA?

Answer 2

• Protects businesses against non paying coustomers
• Businesses that are authorised credit providers may attract more coustomers

Question 3

Negatives of NCA?

Answer 3

• Implimentation is time consuming and expensive
• Failing to comply with the NCA may result in the business facing legal action

Question 4

Non-compliance?

Answer 4

• Refusing to grant credit based on dicriminatory grounds
• Granting credit recklessly to consumers and failing to explain the credit contract
• Failing to conduct affordability assesments

Question 5

Penalties for non-compliance?

Answer 5

• May recive large fines
• Business license may be revoked
• Court may declare the granting of credit reckless and can order the client to not pay part of ot back

Question 6

Ways to comply?

Answer 6

• Register the business with the NCR
• Submit annual compliance reports
• Conduct credit checks with a registered credit bureau

Question 7

Rights of consumers in terms of NCA?

Answer 7

• Apply for credit and be free from any discrimination
• Obtain reasons for credit being refused
• Receive information in plain and understandable language