The purpose of the National Credit Act is to promote a fair and non-discriminatory marketplace for access to consumer credit and for that purpose to provide for the general regulation of consumer credit and improved standards of consumer information; to promote black economic empowerment and ownership within the consumer credit industry; to prohibit certain unfair credit and credit-marketing practices; to promote responsible credit granting and use and for that purpose to prohibit reckless credit granting; to provide for debt re-organisation in cases of over-indebtedness; to regulate credit information; to provide for registration of credit bureaux, credit providers and debt counselling services; to establish national norms and standards relating to consumer credit; to promote a consistent enforcement framework relating to consumer credit; to establish the National Credit Regulator and the National Consumer Tribunal; to repeal the Usury Act, 1968, and the Credit Agreements Act, 1980; and to provide for related incidental matters.
The Act comes into operation with effect from 1 June 2006 unless otherwise indicated. It is important to note that in Government Gazette No 28824 dated 11 May 2006 The President of the Republic of south Africa issued a Proclamation, No 22 of 2006, the effect of which is that some section of the Act come into effect on 1 June 2006, others on 1 September 2006 and others on 1 June 2007.
The Proclamation can be found here.
Source: SABINET
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