National Credit Bill, B18-2005
National Credit Act: Commencement 11 May 2006
The draft National Credit Regulations, as
published for general public comment on 20 February 2006.
Introduction
The National Credit Bill, B18-2005 ("the Bill") was tabled
in Parliament on 8 June 2005. The Portfolio Committee for Trade
and Industry convened public hearings during August 2005 and
subsequent to deliberations between the Portfolio Committee and
the dti, the Bill was referred to the National Assembly
for voting and was passed on 13 October 2005. The Bill was
subsequently adopted in the National Council of Provinces on 16
November 2005 and returned to the National Assembly and was passed
on 13 December 2005. The Bill will now be submitted to the President
for assent. Please click here
to download a copy of the Bill
B18D-2005
and the amendments B18C-2005.
Print copies of the Bill [B18D-2005 and B18C-2005] can be obtained from the government
printer, telephone + 27 012 465 7531 or Parliament at +27 021 403 2224/6
The Bill is the culmination of a lengthy review and consultation process and
proposes to repeal the Usury Act, 73 of 1968, the Credit Agreements Act, 75 of
1980 and the Exemption Notice, 1999.
The objectives of the Policy and the Bill are to:
- Improve transparency
- Prohibit unfair contractual terms and practices
- Prohibit anti-competitive practices
- Curb reckless credit extension
- Provide measures to assist over-indebted consumers
- Regulate information acquired, held and reported by credit bureaux
- Create a central register of debt obligations; and
- Establish Regulator and Tribunal for effective enforcement
Background
Various developments over the past few years have indicated that consumer
credit legislation needed an overview.
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In the circumstances the dti appointed a Technical Committee in May 2002
to conduct an extensive review of the consumer credit market, and this
culminated in a report handed to the dti in October 2003.
Read more
The research suggested various areas for policy and regulatory reform and
after careful consideration of the findings of the Technical Committee,
the dti drafted the Consumer Credit Policy Framework.
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