MANAGING THE NATIONAL CREDIT ACT (NCA)

• Explain the purpose of the NCA.
• Describe the main functions of the following role players:
  • National Credit Regulator
  • The National Consumer Tribunal
  • Credit Bureaux
  • Debt counsellors
  • Payment distribution agents
  • Dispute resolution agents
  • Credit providers and agents
  • The South African Credit and Risk Reporting Association (SACCRA)
  • Describe a consumer in terms of the NCA.

Learning Unit 2
Scope and application of the NCA

• Explain what a credit agreement is.
• Classify the different categories of credit agreements.
• Understand who and what the National Credit Act applies to.
• Describe the credit agreements that the NCA does not apply to.
• Explain the limited relevance of the NCA with regards to credit agreements in respect of which the consumer is a juristic person, as well as limit relevance to incidental credit agreements.

Learning Unit 3
Types of credit agreements

• Distinguish between the different types of credit agreements, including:
  • Credit facility
  • Credit transaction
  • Credit guarantee
  • Combination of agreements

Learning Unit 4
Rights of consumers

• Understand the consumer’s right with regards to credit.
• Understand the consumer’s right with regards to confidentiality, personal information and credit records.

Learning Unit 5
Credit and affordability assessment

• Explain the concept of over-indebtedness and reckless credit.
• Recognise the process and requirements pertaining to credit and affordability assessments.

Learning Unit 6
Credit documentation

• List the credit agreements that are prohibited in terms of the NCA.
• Describe the provisions that are not allowed to be included in a credit agreement.
• Explain the requirements for small, intermediate and large quotations as set out in the NCA.
• Describe the information that must be contained in small, intermediate and large credit agreements.
• Understand the provisions of the NCA in terms of the amendment and termination of a credit agreement.
• Explain the requirements that the NCA stipulates for the delivery of statements of account to consumers.

Learning Unit 7
Rates and fees

• Describe the permissible rates and fees associated with a credit agreement.
• Understand the fees that may be added to the principal debt of unsecured and short-term credit transactions.
• Explain the rules regarding the cost of credit, principal debt, initiation fees, service fees, interest and credit life insurance.
• Calculate initial fees, service fees, interest and credit life insurance according to the requirements as set out in the NCA.
• Understand the requirements w.r.t default administration charges and collection costs.
• Explain the requirements regarding rates and fee increases and the notice periods applicable thereto.
• Understand the statutory in duplum rule.

Learning Unit 8
Data submissions

• Describe the credit provider’s data submission obligations i.t.o. Section 71A.
• Understand the credit provider’s data submission obligations i.t.o. Regulation 19(13), fees that may be added to the principal debt of unsecured and short-term credit transactions.
• Explain the effect of non-compliance to the NCA’s data submission requirements.
• Describe the process of submitting data to the Data Transmission Hub, including relevant timelines.
• Understand the South African Credit Risk Reporting Association on-boarding process.
• List the data submission requirements i.t.o the format and layout, as well as requirements as set out in regulation 19(5).
• Describe the high-level adverse information listing process.

Learning Unit 9
Statutory reporting

• Understand the requirements for the compilation and submission of the following reports / returns:
  • Compliance report
  • Statistical returns
  • Annual financial statements
  • Financial and operational return; and
  • Assurance engagement report

Learning Unit 10
Miscellaneous matters

• Explain the collection and repayment practices and debt enforcement by repossession or judgement.
• Understand the obligations and requirements regarding marketing and advertising practices, including:
  • Negative option marketing;
  • Direct marketing and sale of credit at home or work;
  • Advertising practices; and
  • The marketing options register.
• List the credit provider’s obligations and requirements relating to the keeping of registers, record retention and registration renewal.
• Describe the types of offences set out in the NCA and the penalties that may be imposed on a person convicted of an offence.
• Understand the requirements of – and process of desktop audits and investigations that may be conducted by the NCR.

• Learners will receive a MBSE certificate after successful completion of the course.
• They will also receive a NCA card that is necessary for Finance and Insurance brokers (F&I).

1. After studying the material, the learner will complete an online Final Assessment.
2. 60% is required to be competent.