The National Credit Act And Its Regulations In The Context Of Access To Finance In South Africa

With its National Credit Act (2005) and Regulations (2006) the South African government is moving aggressively against predatory lending, consumer abuses and outdated, piecemeal and ineffective legislation on consumer credit.

This paper analyses the potential impact of this Act and its regulations on access to all forms of financial services.

The South African financial sector is complex, comprising both a highly developed formal sector and an informal financial market serving about 85% of the population1. As the National Credit Regulator starts work, the need to understand how this legislation will affect access to finance is critical.