National Credit Act

The National Credit Act (NCA) No 34 of 2005 is designed to achieve a number of objectives most of which are to benefit and protect the consumer. It regulates consumer credit and seeks to ensure fair and non-discriminatory access to consumer credit and improved standards of consumer information. It also seeks to promote responsible granting of credit and provides for debt re-organisation in cases of over-indebtedness. Those credit providers who provide credit recklessly can find their agreements with consumers suspended and the credit provider’s rights under the agreement or under any law in respect of that agreement are unenforceable. Some agreements may be unlawful in terms of the NCA.

A critical analysis of the National Credit Act in the context of medical schemes and Practical guidelines on contracting issues involving the National Credit Act

• The Head of Health Service and Legislation at BHF, Debbie Pearmain, compliled an
  evaluation of the NCA legislation in order to assess the impact and cost implications of
  this legislation to medical schemes and Practical guidelines on contracting issues involving the National Credit Act.

Should you wish to view the detailed analysis and the guidelines please click here to login

Summary of the National Credit Act

Medical schemes as credit providers:
• Medical schemes will not be affected unless they charge interest on loans to members or savings accounts in debit
Medical schemes as credit consumers:
• Contracts between schemes and providers could be affected if there are penalty clauses for late payment, provisions for interest on overdue payments etc
• Contracts with credit providers who are not registered with the NCR are invalid
Click here to view the National Credit Act and Regulations
• National Credit Act 34 of 2005
• Regulations