The Test for NCA Applicability
The
National Credit Act No. 34 of 2005 ("the NCA" or
"Act") has had a significant impact on transactions
involving deferred payment and interest in South Africa.
However, it has almost become trite law to refer to the
interpretive challenges that arise out of the poor drafting, while
at the same time praising it's good intentions. See, for
example, Nedbank
Ltd and Others v The National Credit Regulator and Another
(662/2009, 500/2010) [2011] ZASCA 35 (28 March 2011) at 2.
The purpose of this article is to give a broad understanding of
when the NCA applies to a transaction.
The applicability of the Act to a transaction can have
far-reaching consequences as the NCA is extensive in its consumer
protection. It places many obligations and restrictions on the
credit provider whose transaction is subject to the Act and
conversely provides many benefits to the consumer in such a
transaction.
