The National Credit Act (Act 34 of 2005) is the main consumer-credit law in South Africa. It applies to almost every credit agreement — bonds, vehicle finance, personal loans, credit cards, store accounts, and microfinance — and is administered by the National Credit Regulator (NCR).
The NCA’s affordability rule requires lenders to assess a consumer’s ability to repay before extending credit; lending without that assessment is reckless credit, which a court can set aside. The Act also caps interest rates by product, requires plain-language disclosure (the pre-agreement quote), and codifies the in duplum rule — interest, fees, and collection costs cannot exceed the unpaid principal.
When a consumer can’t service their debts, the NCA’s debt-review process (under section 86) lets a registered debt counsellor restructure repayments through a magistrate’s court order, with creditors barred from legal action while the plan is in force. Debt review is more flexible than sequestration but stays on a credit record until the rearrangement is paid off.