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National Credit Act [NCA] Act 34 of 2005:
* [The NCA aims to promote a fair and non-discriminatory marketplace for access to consumer credit. It provides general regulation of consumer credit and improved standards of consumer information]
view here: → National Cred Act 34 of 2005
THE NATIONAL CREDIT ACT AND RECKLESS LENDING: [an Article by listed attorney Fawzia Khan]
As we continue to be tempted by a myriad of promotions or advertisements offering to sell us anything from the latest set of wheels, or trendiest “must-have” jewellery or in fact any other goods or services, where we may need a credit facility, it’s worth knowing what the law says about credit agreements or credit facilities. The National Credit Act “NCA” applies to all consumers who want credit and whose annual turn over is below a certain threshold, which currently set at R1 million.
Before any credit agreement is signed, the credit provider is required to provide the consumer with a quote, either electronically or in a hard copy. The quote must set out the value of the goods or services, plus the details of all other costs associated with that credit transaction. Credit providers are required to perform a thorough assessment of a consumer’s affordability before approving any credit facility.
The credit provider is warned against reckless lending, so as to protect the consumer against over- indebtedness. If a credit provider is found to have extended credit recklessly, the consequences for him are dire.
When it comes to advertising any credit, be it in the print, audio, visual or electronic media, the law says that the advert may not be misleading in any way.
All information relating to the credit transaction has to be fully disclosed. The rate of credit, how many instalments, the fees to be charged, etc. have to be spelt out in the advert.
The Original, Full article can be Viewed here: → https://www.findanattorney.co.za/content_NCA-reckless-lending
SECTION 129 OF THE NATIONAL CREDIT ACT:
Section 129 of the National Credit Act compels every credit provider, e.g. the bank, to send a letter to a customer who is in arrears with his payment, drawing the default to the notice of the customer. This notice must be sent to the address which the customer has indicated in the agreement, as being his chosen domicilium. Should the bank not follow this step, it cannot institute any legal action against the defaulting customer.
What happens however, when the bank has proof it sent the notice, but the customer says he did not receive it? Sadly for consumers, the courts interpreted Sections 129 and 130 in the NCA as simply a requirement to despatch the notice, regardless whether the debtor received the notice or not.
The Original Full Article can be Viewed here: → https://www.findanattorney.co.za/content_national-credit-act-section-29