National Credit Act No. 34

South Africa

(enacted in 2005)

The National Credit Act No. 34 provides for the general regulation of consumer credit and credit providers in South Africa. The purpose of the act is to promote a fair, transparent, competitive, sustainable, efficient and accessible credit market and industry, and to protect consumers in South Africa. The act establishes the National Credit Regulator to replace the Microfinance Regulatory Council, and also repeals the Usury Act of 1968.

This law is organized as follows:

  • Chapter 1 Interpretation, Purpose and Application of Act;
    • A. Interpretation;
    • B. Purpose and application;
    • C. Classification and categories of credit agreements;
  • Chapter 2 Consumer Credit Institutions;
    • A. National Credit Regulator;
    • B. National Consumer Tribunal;
    • C. Administrative Matters;
    • D. National and provincial co-operation;
  • Chapter 3 Consumer Credit Industry Regulation;
    • A. Registration requirements, criteria and procedures;
    • B. Compliance procedures and cancellation of registration;
  • Chapter 4 Consumer Credit Policy;
    • A. Consumer rights;
    • B. Confidentiality, personal information and consumer credit records;
    • C. Credit marketing practices;
    • D. Over-indebtedness and reckless credit;
  • Chapter 5 Consumer Credit Agreements;
    • A. Unlawful agreements and provisions;
    • B. Disclosure, form and effect of credit agreements;
    • C. Consumer’s liability, interest, charges and fees;
    • D. Statements of account;
    • E. Alteration of credit agreement;
    • F. Rescission and termination of credit agreements;
  • Chapter 6 Collection, Repayment, Surrender and Debt Enforcement;
    • A. Collection and repayment practices;
    • B. Surrender of goods;
    • C. Debt enforcement by repossession or judgment;
  • Chapter 7 Dispute Settlement Other than Debt Enforcement;
    • A. Alternative dispute resolution;
    • B. Initiating complaints or applications;
    • C. Informal resolution or investigation of complaints;
    • D. Tribunal consideration of complaints, application and referrals;
    • E. Tribunal orders;
  • Chapter 8 Enforcement of Act;
    • A. Searches;
    • B. Offences;
    • C. Miscellaneous matters; and
  • Chapter 9 General Provisions.

The schedules are:

  1. Rules concerning conflicting legislation;
  2. Amendment of laws; and
  3. Transitional provisions.

The regulations promulgated pursuant to this act in 2006 can be found under “Related Laws/Regulations.”