This document provides a concise summary focused on the actors of the National Credit Act (NCA). It provides a brief description of the key actors involved and highlights essential factor to consider for each of these actors within the NCA framework
his is the body with whom credit
T
providers must register
I n place to promote the aims and
xample: one way it does this is by
e
objectives of the NCA
preventing reckless credit
I t regulates the consumer credit industry
(i.e by means of providing guidance in the
credit market and it educating the public
and promoting awareness on the credit
market )
hat can happen:
w
I t promotes informal dispute resolution by - if they find that there has been in-
investigating compliance to the act, they can provide
and dealing with complaints by credit providers with a credit notice (which
consumers (i.e it has the power to informs credit providers about what they
investigate credit providers) are wrongfully doing and when to stop). if
the credit provider still does not comply,
the matter can be taken to the National
tribunal.
I t maintains a register of credit bureaux;
credit providers; and debt counsellors
Credit Bureaux:
hese are independent repositories
T
(archives) of consumer credit information
redit bureaux must register with NCR and
C
may not be a natural person (i.e they must
be incorporated as a juristic person)
ow can this disadvantage consumers?
h
because it is common for a credit provider
to do a background check on a consumer’s
information kept of consumers needs to credit history with a credit bureau before
redit bureaux investigate consumer
C be accurate, valid and up to date to avoid entering into a new credit agreement with
credit records and maintain data on these consumers being disadvantaged as a result them. Therefore, any negative (inaccurate)
of this information (Eg: previous non-payment;
court judgments ordering payment) can
be an obstacle (be a disadvantage) for a
consumer
ational Consumer Tribunal
N
(NCT):
I s an administrative tribunal with
I t adjudicates (deals) specifically consumer
adjudicative function
complaints
he tribunal functions like a court and can
T
make various orders (e.g.: cancellation of a
credit provider’s registration)
hey have the status of High Court orders,
T
but it is a separate body from the courts,
and it can only hear certain types of matter
(cannot deal with enforcement of a debt
cannot get an NCT to repossess property
etc)
Debt Counsellor:
ebt counsellors are natural persons who
D
have registered as such with NCR
hey must pass a dedicated debt
T
counselling training course to be
considered as debt counsellors
heir function in the credit market is to:
T
1. Assess consumers for ‘over-indebtedness’
as part of the debt review process under
( i.e they assess if consumers are
the NCA AND
overwhelmed or are in the correct state to
enter into a credit agreement)
2. They must at the same time investigate
whether credit was extended recklessly to
the consumer
Magistrate Court:
oth Magistrate’s Courts and High Courts
B
can hear matters relating to the NCA
B: the normal MONETARY LIMITS do not
N
apply to Magistrate’s Court jurisdiction
when dealing with NCA matters. Therefore
a Magistrate’s Court could hear even a
matter concerning a large credit
agreement, such as a home loan.
This is a good thing as litigation is cheaper
in the Magistrate’s Court, which assists
consumers
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