National Credit Amendment Bill [B47-2013]

Call for comments opened 14 February 2014 Share this page:

Trade, Industry and Competition

The Portfolio Committee on Trade and Industry ("Committee") has resolved to request permission from the National Assembly to make further amendments to the National Credit Act, 2005 (Act No. 34 of 2005). In the event that this permission is granted, the Committee is inviting you to provide input on these issues that arose from the first public involvement process on the National Credit Amendment Bill, B47 -2013.


The objects of the additional amendments are as follow:
▪ New clause: Revision of the governance structure of the National Credit Regulator (NCR) to remove the board and allow the NCR to be directly accountable to the Minister (section 19 of the Act)
▪ New clause: Providing for an offence where prohibited charges are charged by the credit provider, including where the capped interest rate is exceeded (section 100 of the Act).
▪ New clause: Capping and/or regulating the cost and not just the value of credit insurance (section 106 of the Act).
▪ Clause 20: Alignment of the delivery of a section 129(1) notice with the judgement in Sebola and Another v Standard Bank of South Africa Ltd and Another (CCT 98/11) [2012] ZACC 11; 2012 (5) SA 142 (CC); 2012 (8) BCLR 785 (CC) (7 June 2012) to ensure that there is proof that the notice was delivered (section 129 of the Act).
▪ New clause: Providing for an offence where debts that have become prescribed under the Prescription Act, Act No. 68 of 1969, are collected, sold, and re-activated (Section 133 of the Act).
▪ New clause: Providing for the Minister to prescribe additional regulations based on the proposed amendments in the Amendment Bill, as well as the proposed additional areas mentioned above. These regulations will include provisions for a 'fit and proper' test; a process to deregister a PDA; the duties, obligations and fees of Payment Distribution Agents and ADR Agents; assessment criteria to determine if an applicant's commitments to prescribed guidelines are sufficient; a formula for penalty for late renewal of registration; and termination of / withdrawal from debt review process.

Comments can be emailed to Mr A Hermans at; and by no later than Monday, 17 February 2014.

Enquiries can be directed to Mr A Hermans on tel 021) 403-3776

Issued by: Ms J Fubbs, Chairperson: Portfolio Committee of Trade and Industry