Self-assessment
National Credit Act Self-Assessment
12 yes/no questions for businesses that lend money or sell on credit: whether you must register as a credit provider, checking affordability, giving clear disclosure, dealing with default, and keeping records. You get a score for each area and a list of gaps with what to do about each one.
1. Are you a credit provider, and are you registered?
The Act applies to most credit agreements between a credit provider and a consumer: loans, instalment sales, leases, credit cards and store accounts. Answer Not applicable throughout if you never lend or sell on credit.
1. Have you checked whether your credit agreements fall under the Act (consumer, type of agreement, and any exclusion) and written down the answer?
(NCA s4)
2. Are you registered with the National Credit Regulator as a credit provider if you need to be?
Registration was once required only above 100 agreements or R500,000 of principal debt. Sources say the number-of-agreements test was removed in 2015 and the amount threshold was set to nil in 2016, so check the current rule. (NCA ss 40, 42)
3. Do you renew your registration and pay the fees each year, and submit the annual return the Regulator requires?
(NCA, NCR rules)
2. Before granting credit
1. Before granting credit, do you assess the consumer's affordability (income, expenses, existing debts and credit history) and keep the assessment?
(NCA s81)
2. Do you avoid reckless credit, such as lending without the assessment, or when the consumer clearly cannot afford it?
(NCA s80)
3. Do you check the consumer's credit record with a registered credit bureau where you rely on it?
(NCA, credit bureau regulations)
3. The agreement and disclosure
1. Do you give the consumer a pre-agreement statement and quotation, and a copy of the signed agreement, in a form the Act requires and plain language?
(NCA ss 92, 93)
2. Do your agreements stay within the maximum interest rates, fees and charges set by the regulations, and avoid prohibited terms?
(NCA ss 100 to 105)
3. Do you send the consumer regular statements and tell them of changes, as the Act requires?
(NCA s108)
4. Default, collection and records
1. Before you take court action or enforce a debt, do you send the required default notice and wait the required period?
(NCA s129)
2. Do you collect debts fairly, without harassment, and tell consumers about debt review and their rights?
(NCA ss 86, 130, Debt Collectors Act)
3. Do you keep each credit agreement, the affordability assessment and all related records for the period the Act requires, and handle personal information in line with POPIA?
(NCA s170, POPIA)
Sources
- National Credit Act 34 of 2005 (gov.za)
- NCR: registration of credit providers, sections 39 to 53 (National Credit Regulator)
- NCA section 42: thresholds applicable to credit providers (Acts Online)
- Change in threshold for registration as a credit provider (Simmons & Simmons)
- When is registration as a credit provider required? (Hogan Lovells)
Turn these gaps into tracked tasks
Assign owners and due dates, keep the evidence, and show your progress to clients and auditors.