Draft NCA Amendment Bill published for comment
The long awaited changes to the National Credit Act are finally underway. For many years those who deal with the NCA have pointed to drafting errors and confusion over certain key points. As such the industry has been calling for ammendments to be made to the Act. Now after consultation with various parties the DTI have given Parliament a draft of the possible changes to the National Credit Act. They are now making these changes public and calling for comment. The deadline for comments is the 28th of June ( basically one month). You can send your written submission to the Director-General, Department of Trade and Industry, Private Bag X84, Pretoria, 0001, or to nca@the dti.co.za
A policy framework review document has also been published at the same time. The document discusses the strengths and weaknesses of the existing National Credit Act ( NCA) and how certain changes are needed to bring about clarity on many areas such as debt counselling or debt review matters:
NCA Policy Framework
The Document can be downloaded here: NCA Policy Framework Download
The Draft National Credit Amendment Bill
Look out for changes that could limit the arbitrary termination of debt reviews, new powers granted to the National Credit Regulator which could allow it to refer matters to the National Credit Tribunal to declare credit agreements reckless, empowering Magistrates to restructure not only the term and amount paid each month but also the interest rates on credit accounts under debt review and drafting changes to Section 129 and Section 130.
The Document can be downloaded here: NCA Amendment Bill Download
You are welcome to leave comments below in regard to the draft amendments or if you would like to partake in the more formal side of things you can send your written submission to: the Director-General, Department of Trade and Industry, Private Bag X84, Pretoria, 0001, or to nca@the dti.co.za
The Policy review document states that the purpose of the change (amendment to the NCA) is also to reduce litigation in regard to NCA matters not to inadvertently create a whole new round of legal back and forth trying to gain clarity. This will depend greatly on the wording and phrasing of the NCA Amendment Bill. If you see anything which concerns you or seems strange or if you see something which could be abused (loopholes) please feel free to comment as Amendments to an Act only come around every now and then and we could be stuck with this for a long time to come.