Legislation and governance
National Credit Act

National Credit Act

The National Credit Act, No 34 of 2005 National Credit Act promote and advance the social and economic welfare of South Africans, promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market and industry, and to protect consumers, by:

  • promoting the development of a credit market that is accessible to all South Africans, and in particular to those who have historically been unable to access credit under sustainable market conditions;
  • ensuring consistent treatment of different credit products and different credit providers;
  • promoting responsibility in the credit market;
  • promoting equity in the credit market by balancing the respective rights and responsibilities of credit providers and consumers;
  • addressing and correcting imbalances in negotiating power between consumers and credit;
  • improving consumer credit information and reporting and regulation of credit bureaux;
  • addressing and preventing over-indebtedness of consumers, and providing mechanisms for resolving over-indebtedness based on the principle of satisfaction by the consumer of all responsible financial obligations;
  • providing for a consistent and accessible system of consensual resolution of disputes arising from credit agreements; and
  • providing for a consistent and harmonised system of debt restructuring, enforcement and judgment, which places priority on the eventual satisfaction of all responsible consumer obligations under credit agreements.