The credit bureau is required to protect the confidentiality of consumer credit information that is provided or provided to it. Credit providers must also offer consumers the opportunity to be excluded or broadcast from telemarketing campaigns, marketing or customer lists, and to disseminate emails or TEXT messages en masse. If a court declares that a given credit contract is unwise, it must also decide whether or not the consumer is over-indebted at the time of the legal proceedings. All consumer debts must be taken into account. If the court finds that the consumer is over-indebted, he or she can drop an order in the definition of credit contracts in the act. Section 5 defines the limited provisions of the law applicable to them. For mortgage loan contracts, the maximum interest rate is 24.9% per year. A prior agreement is a document describing the terms of the credit contract that the credit provider is in agreement with the consumer. Understanding the impact of the new borrowing cost provisions in the National Credit Act and Regulations is essential. Guaranteed bank loans, credit card accounts or checking accounts are covered by the “credit facility” category. The maximum interest rate is also linked to the SARB Bank Repurchase Rate and is currently 29.8 per cent per annum. If a consumer is late in a credit contract and the credit provider has already started a debt enforcement procedure, the agreement may not be possible. This could encourage credit providers to initiate debt collection proceedings earlier than they would otherwise have done.
The NCA lists a number of consumer rights protected by law. A party that violates the rights of consumers protected by law commits a violation of credit law that allows the consumer to exercise through established channels of conflict. If the debt board has not been successful, the lender has no choice but to initiate enforcement proceedings within the meaning of the NCA. Much of the responsibility for implementing the objectives of the Act rests with the National Credit Regulator (NCR), which oversees the entire consumer credit industry, including all the functions and responsibilities of the former Microfinance Regulatory Council (in the context of microcredit). The NCR is an independent, board-led organization with a Chief Executive Officer who can appoint inspectors and investigators. Interest rates and fees are only maximum amounts. The Department of Trade and Industry hopes that the credit sector will not “jump at maximum rates” and has stated that it has the power to adjust these rates quickly if necessary. The debt advisor will help the client reorganize/restructure his obligations in negotiations with his credit providers, depending on the amount the consumer can afford to pay each month for his debts.