National Credit Act

What is the National Credit Act?

The National Credit Act is legislation that aims to safeguard consumers engaged in credit arrangements. It establishes oversight mechanisms for various credit products including mortgages, overdrafts, micro-loans, and pawn transactions.

The framework applies to financial institutions and Backyard Finance, establishing standards for debt counseling and restructuring programs for over-indebted individuals.

Application Scope

The Act extends to consumer agreements and entities like close corporations and partnerships with asset values or annual revenue under the R1 million threshold.

Consumer Impact

Applicants must furnish comprehensive financial documentation to enable affordability evaluations. Credit documentation must use straightforward language with transparent cost breakdowns.

Lenders bear responsibility for ensuring applicants comprehend associated risks and obligations.

Process Changes

When applying for credit, additional documentation regarding income and expenses becomes necessary for affordability assessment purposes.

Individuals married in community of property require spousal written consent before submitting loan applications.

Backyard Finance Compliance

Backyard Finance is committed to full compliance with the National Credit Act. We ensure that all credit agreements are fair, transparent, and conducted in accordance with the law.

Our processes are designed to protect consumers and provide responsible lending practices that prioritize affordability and financial wellness.

Contact Information

For additional inquiries about the National Credit Act and how it applies to your credit application:

info@backyardfinance.co.za