What is the threshold in the National Credit Act?

The current threshold is an annual turn-over or asset value exceeding R1 000 000.00 in terms of Section 7(1)(a) while a large agreement is R250 000.00 or over in terms of Section 9(4).

Who does the National Credit Act apply to?

Consumer: is a natural or juristic person that purchases goods or services on credit, or borrows money under a credit agreement. However, the NCA will only apply to a juristic consumer whose annual turnover or asset value is less than R1 000 000 at the time of entering into the credit agreement.

What is the 2021 Reg Z threshold?

Based on the annual percentage increase in the CPI-W as of June 1, 2021, the exemption threshold will increase from $58,300 to $61,000, effective Jan. 1, 2021, effective January 1, 2022.

Who needs to register with the NCR?

The NCR is also tasked with the registration of credit providers, credit bureaux, and debt counsellors; and with the enforcement of compliance with the Act. It’s a requirement of any party or juristic person who advances money and or who extends credit to register with the NCR.

Who does the National Credit Act protect?

the Consumer
The National Credit Act (35 of 2005) is part of a comprehensive legislation overhaul designed to protect the Consumer in the credit market and make credit and banking services more accessible.

Who does the NCA not apply?

The NCA in its entirety does not apply to juristic persons with an asset value or annual turnover of more that R1 million nor does it apply to juristic persons with an asset value or annual turnover of less than R1 million who enter into a mortgage agreement or an agreement with a loan value of more than R250 000.

Who is regulated by NCA?

The National Credit Act established the National Credit Regulator (NCR) to regulate the credit industry and ensure that credit providers comply with the NCA. In addition, the NCR is responsible for investigating and evaluating Consumer complaints about alleged contraventions of the NCA by credit providers.

What is Reg Z exemption threshold?

Effective January 1, 2022, the exemption threshold amount is increased from $58,300 to $61,000. This amount is based on the CPI-W in effect on June 1, 2021, which was reported on May 12, 2021 (based on April 2021 data).

When must I register with the NCR?

A regulatory requirement of the Credit Act is that a person must register as a credit provider with the National Credit Regulator (“NCR”) if the total principal debt arising from the credit agreement exceeds the threshold prescribed by the Minister of Trade and Industry from time to time.

Who is excluded from registering as a credit provider?

Requirements to register as a credit provider is excluded where the consumers are juristic persons (together with all its related juristic persons) with an asset value or annual turnover of at least R1 000 000.00 (one million Rand) or where the juristic person concludes a large credit agreement with the credit provider …

What are the three purposes of National Credit Act?

The Act has three main purposes, in terms of section 3; to promote and advance social and economic welfare of South Africans; to promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market and industry, and to protect consumer.

How old does a customer have to be to get credit in South Africa?

Original Identification document (must be 18 years or older) Latest salary slip. 3 months bank statement. The minimum salary requirement for a credit card application is R5 000, and R10 000 for self-employed clients.

What does the NCA regulate?

The Purpose of the National Credit Act is to: promote a fair and non-discriminatory market place for access to Consumer credit; regulate Consumer credit and improve standards of Consumer information; prohibit certain unfair credit and credit marketing practices; promote responsible credit granting and use; prohibit …

Does regulation Z apply to all loans?

Regulation Z also applies to installment loans, including but not limited to personal loans, auto loans and short-term installment loans. With student loans, however, it applies to private student loans. Across all types of installment loans, you’ll receive all the basic protections other borrowers receive.

Who made the determination of thresholds under the National Credit Act 2005?

In terms of sections 7 (1), 10 (1) and 42 (1) of the National Credit Act, 2005 (Act No. 34 of 2005) I, Mandisi Mpahlwa, Minister of Trade and Industry, do hereby make the determination of thresholds as set out in the schedule hereto. 1. Definitions

What is the National Credit Act?

What is the NCA? The National Credit Act (NCA) was signed into law by the President on 15 March 2005, and governs the assessment, application and maintenance of credit granted by a credit provider to a consumer within the Republic of South Africa. The NCA must be read in conjunction with the Regulations passed in terms of the Act.

What is the NCA threshold for credit cards?

Subsequently, the amendment of the NCA (see the National Credit Amendment Act) saw the removal of the first requirement and, more recently, a reduction by the Minister of the second requirement’s threshold from R500 000,00 to R0,00 (nil). Does the transaction fall within the ambit of the NCA?

What is the threshold for debt relief under the NCA?

When the principal debt owed to him/her under all of his/her current credit agreements exceeded R500 000,00. Subsequently, the amendment of the NCA (see the National Credit Amendment Act) saw the removal of the first requirement and, more recently, a reduction by the Minister of the second requirement’s threshold from R500 000,00 to R0,00 (nil).