Getting caught in a debt trap is no joke. Taking on more debt to pay your outstanding loans can quickly spin out of control.

For this reason, the National Credit Act (NCA) was introduced to regulate the credit landscape in South Africa, and foster awareness of the credit rights to which individuals are entitled to.

It was signed into law on 15 March 2005 by South Africa’s President to promote a healthy relationship between credit providers and consumers within SA’s borders. It was implemented to take the place of three outdated pieces of legislation.

The NCA legally protects South African consumers and simplifies and supports their journey to credit wellness. By promoting and implementing responsible lending standards, the NCA serves the people by holding lenders accountable to their consumer base.

XDS is registered with the National Credit Regulator and strictly adheres to the National Credit Act.

The NCA grants you the following rights

• To apply for credit.
• To protection against discrimination.
• To be provided with reasons for being refused credit.
• To access and challenge your credit information.
• To receive your credit information in an official language.
• To receive all credit-related documents in plain and understandable language.
• To have your confidential information protected.

Debt Counselling

The National Credit Regulator (NCR) guards the credit reputation of consumers by enforcing the NCA and intervening when questionable debt practices occur. It also serves to maintain the standards by which debt counselling takes place in South Africa. To prevent downward debt spirals enabled by fly-by-night financial advisors, the NCR requires legitimate debt counsellors to register with the regulator. Consumers are urged to request a debt councillors NCR certification before paying them for their services.

Beware of ‘credit repair’ companies

Some businesses claim to be able to remove negative information on your credit report. The majority of them operate illegally. The Credit Bureau Association (CBA) does not support any of these organisations and advise consumers not to use their services. It is important to remember that there is nothing that these credit repair companies can do that you could not do for yourself. They often take large repair up-front fees and do not deliver the promised results.

Disputing information on your credit report

The Credit Bureau Association encourages consumers to manage their credit reports by accessing their reports at least once a year. It is especially important to do this to combat any fraudulent activities on your name or using your ID. If your credit report displays accounts you did not open, you should contact the companies that had inquired on your credit profile.

Next, request that they provide you with the application form, which you had allegedly signed when you opened the account. Should you receive no feedback, contact the Credit Bureau to lodge a dispute.

For more information relating to the National Credit Act, you can visit the NCA website at https://nca.co.za.

The National Credit Regulator has helpful information and insightful online resources – https://ncr.org.za

Making responsible debt decisions shouldn’t fall squarely on your shoulders. The NCA holds registered credit providers accountable by ensuring they don’t lend recklessly and contribute to consumer over-indebtedness.