An Overdraft Is Not A Credit Agreement As Defined In The Nca- December 03, 2020
Negative results for credit providers in both credit contracts can only be changed in specific circumstances, including the reduction or increase of credit limits. The consumer must also, upon request, tell the lender or sheriff the address of the goods, as well as the name and address of the owner of the premises. All DCs must be registered with the National Credit Regulator and fees are mandatory compared to the NCA. Consumers need to understand and accept the process, fees and payments before submitting to debt advice. Once the consumer has signed a debt advice, the credit bureaus will be informed and the consumer will no longer be able to receive credits for the duration of the debt advice until the procedure has been completed or withdrawn. CREDIT BUREAUX The National Credit Act requires all credit bureaus to be registered with the National Credit Regulator and submit reports. Credit bureaus are required to ensure that the data is accurate at all times and that inaccurate information is immediately deleted at no cost to the consumer after the consumer has filed a complaint. ANCA rules define how credit bureau information is obtained, used and how long it should remain on a consumer`s profile. The new structure for the cost of credit will work better for the largest credit advances of more than R8,000.
The cost of loans for contracts under R1000 is comparable to 30% per month, with no interest rate limit calculated for small loans, the vast majority of microcredit borrowers come from low-income groups. The poorest households bear the heaviest burden of debt servient. It is therefore likely that low-income people and communities that borrow small amounts will continue to suffer from the devastating socio-economic difficulties mentioned above, contributing to the persistence of poverty. MARKETING TO CONSUMERS The National Credit Act limits certain lending practices, such as the sale of door doors. B, unsolicited advertising in the workplace or at home. The NCA has also tightened control over marketing practices and announcements such as automatic credit limit increases and negative option marketing, i.e. if you don`t refuse, we assume you agree. In addition, the National Credit Act provides clear and understandable marketing communication. Consumers must receive a detailed written offer valid for 5 business days to allow consumers to compare their offers with different credit providers. Unfortunately, in South Africa, too many people with too little money have been given too much credit. The end result is over-indebtedness that leads to an endless cycle of frustration for the consumer, who will never be able to repay his debts.  The consumer may at any time transfer the goods subject to the credit contract, whether the consumer is late or not.