It is critical that people understand and actively exercise their various rights and responsibilities under the National Credit Act (NCA).
After all, an educated consumer is a protected consumer, says Debtsafe marketing manager Neil van der Walt.
“Through credit education, you will allow yourself the confidence to know what to look out for when applying for credit and what recommended solution you have when you suffer a debt overload,.”
He also encourages South Africans to get familiar with the law, the National Credit Regulator's (NCR’s) role, and their vital consumer rights.
Understand the National Credit Act
The NCA, which became fully operational on June 1, 2007, aims to provide improved consumer information standards and attempts to promote a fair and non-discriminatory platform for consumer credit while ensuring the process is regulated.
Shaun Rademeyer, chief executive of MultiNET Home Loans states that, in terms of the NCA, all adult natural persons, and every juristic person or association of persons, has the right to apply for credit.
Know the National Credit Regulator
The NCR was established by the Act No. 34 of 2005, and functions as the 'watchdog’ of the credit industry in South Africa. It ensures that credit bureaus, credit providers, and debt counsellors comply with the Act.
“The NCR ensures the development of an accessible credit market - mainly involving underprivileged persons, low-income individuals, and isolated communities, Van der Walt says.
Know your rights
You, as a consumer, have certain rights, including:
1. The right to apply for credit.
2. The right to the disclosure of information before signing a credit agreement.
3. The right to receive information in language that is plain and understandable.
4. The right to the confidential treatment of your personal information.
5. The right to, once a year, get a free credit report from any registered credit bureau.
6. The right to challenge/dispute any incorrect information at a registered credit bureau.
7. The right to apply for a legal, recommended service and process called debt review. The debt review process helps you when you can’t make ends meet and keep up with your debt payments.
Van der Walt urges consumers to seek help from registered professionals if they find themselves over-indebted.
IOL Business