National Credit Amendment Act (NCAA)

National Credit Amendment Act (NCAA)

The National Credit Amendment Act (“the Amendment Act”), 19 of 2014, has been gazetted after almost a year. The amendments set out in the NCAA came into operation on 13 March 2014.

Finn Elliot KPMG SA


KPMG in South Africa


The Amendment Act was enacted pursuant to the outcomes of an assessment on the effectiveness of the National Credit Act (“NCA”) performed by the Department of Trade and Industry.

The assessment concluded that the NCA is one of the finest pieces of legislation to have been passed by the current Government; its greatest success being that it cushioned the South African economy from the financial crisis in 2008.

However, the assessment also revealed that certain gaps in the NCA need to be addressed in order for the NCA to reach its full potential, and that the regulation of credit providers needed to be improved. 

The purpose of the Amendment Act is to amend and clarify certain provisions of the NCA to ensure that the aims set out in the NCA may be achieved. The Amendment Act recognises that, whilst the framework of the NCA and its underlying policy provided was sound, the application of the legislative provisions of the NCA often failed to ensure the best possible outcomes for consumers.


Youtube: KPMG’s Gizelle Boyce takes a look at the amendments to the National Credit Amendment Act (NCAA) 

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