n Annual Survey of South African Law - Financial institutions and stock exchanges

Volume 2006, Issue 1
  • ISSN : 0376-4605



The National Credit Act 34 of 2005 ('the Act') is an ambitious instrument with wide ranging effect. While the Act is aimed at regulating the credit industry it also regulates incidences which are not traditionally classified as the provision of credit. The Act however does not regulate the entire credit industry as there are important exceptions to its application. In essence the Act is a consumer protection statute. It is a synthesis of former interventions in the protection of credit consumers and new regulatory structures. The Act draws under its aegis the functions previously regulated by the Credit Agreements Act 75 of 1980 and the Usury Act 73 of 1968, replacing them within a scheme that covers all manner of credit transactions. The Act simplifies the cumbersome provisions of these previous statutes and is a welcome development (Otto (2006) 4-5). This chapter will focus on credit transactions which involve the extension of credit, which is the core business of financial institutions, and will not discuss incidental credit agreements.

Loading full text...

Full text loading...


Article metrics loading...


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error