National Credit Act (NCA) Refresher

National Credit Act (NCA) Refresher

national credit act understanding

The National Credit Act No 34 of 2005 was passed by Parliament on the 10th of March 2006. It is designed to achieve a system of regulation that will apply to all credit activities, thereby ensuring that all credit providers and credit consumers are treated equally.
Broadly, the Act aims to reduce reckless credit behaviour, both by credit providers and consumers and the level of over-indebtedness in South Africa.

Broadly, the Act aims to reduce reckless credit behaviour, both by credit providers and consumers and the level of over-indebtedness in South Africa.

What will the NCA course enable you to do?

The refresher course offers the perfect opportunity to keep you up to date on any new developments. This is especially important if changes have taken place in the regulatory environment, where the industry evolves and being behind can have negative consequences for your business. As an expert in your own field, you should be able to identify the biggest changes as they happen.

Who ahould apply

Credit providers (providers of personal loans, HP agreements, credit cards and revolving credit), Credit Bureaus and Debt Counsellors who completed the ‘Managing the NCA’ course and who wants to refresh their knowledge i.t.o the requirements of the NCA.

Content

Learning Unit 1
An overview of the 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.
  • 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 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).
  • 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.
  • Explain the data submission process.
  • 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 purpose and process of debt enforcement i.t.o. the NCA.
  • Understand the obligations and requirements regarding marketing and advertising practices.
  • 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.

Learning Material

Students will have online access to their study material which will include a study guide, self-assessments and relevant additional resources.

Fees

R2 800 (incl. VAT)

Dates

Applications are open throughout the year.

Accreditation and Certification

Certification

  • Students will receive a MBSE certificate after successful completion of the course.
  • They will also receive a NCA card, which is a legal requirement for most of the relevant industry players.

Method of Learning

Online learning

Admission Requirements

No admission requirements

How to apply

Applications are open throughout the year. The student will receive the learning material online after registration and proof of payment is sent to our office

Assessment

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

Overview

Starting Date 
All year

Applications:
Applications are open throughout the year.

Method of Training:
Online learning

Course Duration
Estimated 8 hours

Admission Requirements
No requirements

Fee:
FEE: R2 800 (incl. VAT)

Enrol today

The National Credit Act No 34 of 2005 was passed by Parliament on the 10th of March 2006. It is designed to achieve a system of regulation that will apply to all credit activities, thereby ensuring that all credit providers and credit consumers are treated equally.

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