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National Credit Act

  • National Credit Act

      • The National Credit Act 35 of 2005 is part of a comprehensive legislation designed to protect the consumer in the credit market, and make credit
        and banking services more accessible.

        The Act brought with it provisions for the over-indebted consumer as well as provisions on reckless credit. To assist the over-indebted
        consumer, debt review was introduced, whereby a duly registered debt counsellor determines whether the consumer is over-indebted and if so
        makes a recommendation to Court as to the restructuring of the consumer’s debt.

        Purpose of the National Credit Act:

        • 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;

        • To protect the consumer.

        The Act prohibits the granting of reckless credit and also provides for certain remedies that courts can grant to consumers who have fallen
        victim to reckless lending practices. Depending on the circumstances these remedies are: the partial or full setting aside of the consumer’s
        rights and obligations under the agreement; the temporary suspension of the effect of the agreement; and the restructuring of the consumer’s obligations.

        Hi, I’m Kailash Pillay, an attorney from the city of Johannesburg. My passion for the law
        stems from a desire to improve upon the lives of the vulnerable who fall prey to a
        corrupt system.
        I studied at the University of Johannesburg where I obtained my Bachelor of Laws
        degree, the starting point to the long journey of becoming a legal practitioner.
        This profession has taught me to persevere through the complexities of the law and to
        continually develop my skills as a legal professional.