Credit Law
Credit Laws arise under regulations governing interest, finance charges, cash advances, charges for extensions of credit in excess of pre-established limits, late fees, and the like.
The National Credit Act 34 of 2005 intends:
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