The purpose of this Act are to promote and advance the social and economic welfare of South Africans, promote fair, transparent, competitive, sustainable,
responsible, efficient, effective and accessible credit market and industry and to
protect consumers by:

  • Addressing and preventing over-indebtedness of consumers, and providing mechanisms for resolving over-indebtedness base on the principle of satisfaction by the consumer of all responsible financial obligations;
  • 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


The NCA affects credit consumers on every front. Some of the main affects are

More difficult to qualify for credit

To help protect consumers against over-indebtedness, the Act has made it more
difficult for consumers to qualify for credit. The banks are now forced to do a
check on your credit and debt repayment habits each and every time you apply for a line of credit. They also need to take your disposable income instead of your gross income into account when calculating whether you can afford repaying the credit you are applying for.