In the past couple of months the shortcomings of the National Credit Act (NCA) was put under the spotlight during parliamentary hearings and the possibility of a full scale review of the NCA has been mentioned, to address these shortcomings.
During November, the Draft National Credit Act Amendment Bill (the draft bill) was published for commentary. The draft bill contains two proposed changes:
- To change the definition of “consumer” so that the NCA only applies to consumers at retail level by excluding business-to-business transactions, consumers acting as re-sellers and consumers who make use of credit for reasons other than personal consumption.
- To assist consumers under debt review by allowing for the suspension of interest on money due for a period of up to 5 years.
Written commentary is open until 27 December 2012.