We would like to demystify the NCA (National Credit Act) for you. Toyota Financial
Services welcomes the NCA. We are a registered credit provider and support the positive
change that the NCA has introduced. It came into effect on 1 June 2007.
was passed mainly to protect the consumer (regardless of his or her personal wealth)
from being granted credit irresponsibly, as well as the creation of a fair and non-discriminatory
So how does the NCA affect me?
- The NCA aims to prevent consumers committing themselves to more than they can repay.
- You have the right to be given reasons for credit being refused or discontinued.
- You have the right to information in plain and understandable language.
- You have the right to have access to and to challenge credit records and information
held by the credit bureau, to have incorrect records corrected and to be given notification
before negative information is reported to the credit bureau.
- The NCA is very specific about the protection of your personal information. Only
you can give permission to for the distribution of your details to other people.
- The NCA applies to all juristic persons (with limitations) and to all natural persons
(even if they are a sole proprietor).
- It also applies to trusts that have 2 or fewer trustees (unless one of the trustees
is itself a juristic person).
- Rental agreements are not credit agreements for the purposes of the NCA. This means
that a consumer entering into a rental agreement is not governed by the NCA.
- The NCA does not apply to large juristic persons, i.e. those that have an annual
turnover or asset value in excess of R1000 000.00.
Applying for credit under the NCA
Requirements for application:
- You must be provided with a Quotation and a pre-agreement statement from the credit
provider, before entering into a credit agreement.
- The Quotation and a pre-agreement statement must outline the main features of the
proposed agreement as well as a costing.
For TFS to assess your affordability and current level of debt, you’ll need to provide
detailed information to the credit provider, including:
- Detailed statements and proof of the consumer’s income & expenditure,
- a household budget and
- details of other credit commitments
Keeping your history:
Under the NCA, credit providers are required to keep records of all applications
for credit, credit agreements as well as credit accounts for a given time.
When applying for credit under the NCA you need to supply your spouse's written
consent. The NCA has amended the Matrimonial Property Act.