National Credit Act


The National Credit Act (NCA)
As a registered credit provider, we fully support the National Credit Act (NCA), which came into effect on 1 June 2007, and have implemented the necessary policies and procedures to meet the requirements of the NCA. The NCA replaces the Usury Act and the Credit Agreements Act. The information that follows will assist you in understanding how this legislation affects you.

Does the NCA apply to you?
The NCA applies to all credit agreements between parties dealing at arms length (where there is no personal interest between the parties).
The NCA distinguishes between natural and juristic persons.


Natural persons

Juristic persons

• Personal customers
• Sole proprietors
• Trusts with two or less natural person trustees

• Partnerships
• Close corporations
• Companies
• Trusts with three or more trustees

The NCA applies to all natural persons.
Only certain provisions of the NCA apply to juristic persons. Provisions relating to marketing, over indebtedness and reckless credit do not apply to juristic persons.

The NCA in its entirety does not apply to juristic persons with an asset value or annual turnover of more that R1 million nor does it apply to juristic persons with an asset value or annual turnover of less than R1 million who enter into a mortgage agreement or an agreement with a loan value of more than
R250 000. (See the diagram below)




NCA Image



How does the NCA affect you?
The NCA affects all credit agreements entered into after 1 June 2007. Credit agreements entered into before 1 June 2007 remain unchanged and are governed by their original terms and conditions. There are however certain provisions of the NCA which apply to existing agreements.

Listed below are some of the provisions of the NCA which we feel may be important for you to note as they apply to natural persons.


Credit agreements entered into after 1 June 2007

Credit agreements entered into before and after 1 June 2007

What rights do you have?

  • • The right to apply for credit
  • • The right to be protected against discrimination in respect of the granting of credit
  • • The right to be given reasons for credit being refused
  • • The right to information in an official language
  • • The right to information in plain and understandable language
  • • The right to receive documents
  • • The right to protection of customer credit rights
  • • The right to confidential treatment
  • • The right to access and challenge credit records and information
  • • Credit bureaux contact details:
    Experian: 0861 10 56 65
    Trans Union (ITC): 011 214 6000
  • • The right to pay any amount owed to us in advance


  • • When entering into a new credit agreement with you, we will need to obtain your consent to market other products to you
  • • We are no longer permitted to pre-approve credit facilities
  • • We will give you notice before submitting negative information about you to credit bureaux
  • • If you are married in community of property, you must obtain the written consent of your spouse before you apply for a loan
  • • Interest rates, fees and charges will not change, except in accordance with your original credit agreement. If these change, we will notify you
  • • Should you fail to meet your obligations in terms of your agreement, you will be considered to be in default
  • • Once we have notified you of your default you have the following options available to you:
    •     o You may make arrangements with us to bring your payments up to date.
    •     o You may consult an independent debt counsellor
    •     o You may contact an alternative dispute resolution agent, consumer court or the Ombudsman for Banking Services to resolve any dispute
    •     o You will become liable for default administration costs and if legal action is taken against you, collection costs will be charged to you as well
    •     o Should you have a credit facility, such as an overdraft or Credit Card, we may also suspend this facility without notice to you or withdraw all or part of your credit facility on notice to you

How does the NCA protect you against over indebtedness?
The NCA requires that credit providers perform a full credit assessment before entering into a credit agreement with the customer, this includes taking reasonable steps to ensure that:

  o The customer understands the rights, obligations, the risks and costs
     associated with the credit agreement
  o The customer is able to repay the loan

In order to ensure that we protect you against over indebtedness we, in addition to our normal credit assessment, now perform an assessment of repayment ability for each loan application.

In order to ensure that you understand your rights, obligations, the risks and costs associated with the credit agreement you will receive a comprehensive pre-agreement statement and quotation that clearly identifies all the costs involved, the risks associated with the loan, and your rights and obligations. The quote is valid for a minimum of five business days during which you will be given an opportunity to consider the credit being offered. If you have any questions relating to this document we will assist you.

What should you do if you feel that you may be over indebted?
You may be over indebted if – after deducting reasonable living expenses from your total income – you are or will soon be unable to repay your debts. If you believe you are over indebted you should contact us and we will asses your situation and assist you in applying for debt review, if necessary.

Debt review Helpline


[email protected]


0861 111 402


011 631 3462

How do you resolve a complaint?
Your first point of contact in resolving a complaint should always be our Customer Service Centre. If the complaint has not been resolved to your satisfaction then you may contact the Ombudsman for Banking Services or the National Credit Regulator.


Customer Service Centre:

0860 000 260

Ombudsman for Banking Services:

0860 800 900

National Credit Regulator

0860 627 627

Description:  Click here to read the act in full.

If you would like more information, please send an email to: [email protected]

1. What is the NCA?
The National Credit Act is consumer legislation aimed at promoting a fair and non–discriminatory marketplace for customers to access credit. It also aims to protect consumers from over–indebtedness by placing greater responsibility on credit providers to lend money to consumers in a fair and responsible manner. This Act will replace the Credit Agreements Act as well as the Usury Act, which currently govern the industry.

2. When is it enforceable?
The National Credit Act came into effect on 1 June 2007.

3. Who is affected by the NCA?
The NCA affects all personal banking and certain business banking customers (such as sole proprietors and trusts with less than 2 members). It also affects all financial institutions that lend money and as a result of the Act have to register as credit providers. This includes banks and micro–lenders.

4. How will the NCA affect me as a customer?

  • • Customers may be required to provide additional information when applying for credit
  • • Documentation will be easier to understand with a clearer breakdown of costs
  • • Credit providers are required to ensure that customers understand the risks, obligations and costs associated with every loan that they apply for and take up.

5. With the introduction of the NCA what will happen to my bad credit record?
The NCA stipulates the periods that adverse or negative customer data may be stored on the bureau. It also provides for older data to be removed under certain circumstances. It does not mean that all negative data will automatically be removed from the bureau. Customers may contact the bureau to get a report on their credit record. One free credit report per year will be provided to consumers. Additional reports requested during a year will be charged for. Customers are required to continue paying instalments to credit providers on all loans that they have.

6. How can I get more information on the NCA
For more information on the NCA log onto

7. Will there be any changes to processes and forms when applying for credit?
Yes, we will now require additional information when assessing your loan application. This information includes details of all your income and expenditure and if you are married in community of property you will require the written consent of your spouse before you can apply for a loan.

8. What documentation do I need to bring when applying for a loan?
You will need to bring proof of your identification (green bar–coded identity document), your income e.g. payslip and proof of residence.

iStore Card is supported by Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). An authorised financial services and registered credit provider (NCRCP15) 
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