BONDPRO AND THE NCA
ABOUT THE NCA
The National Credit Act, Act 34 of 2005 ("the NCA")
The NCA became fully operational in South Africa on 1 June 2007.
The NCA replaces the Usury Act, 73 of 1968, the Credit Agreements Act, Act 75 of 1980 and the Integration of Usury Laws Act, 57 of 1996, which was the primary legislation governing the granting of credit within the financial services industry since 1968.
In essence, the NCA is designed to promote a fair and non-discriminatory marketplace in South Africa. As such, Bondpro fully supports the NCA and is doing everything in its power to ensure that the manner in which it grants credit always upholds the intentions and requirements of the legislation, while still meeting the varied lending requirements of all its clients in a responsible manner.
The NCA in brief
The main purposes of the National Credit Act can be summarised as follows:
- To promote a fair, competitive, accessible, equitable and sustainable credit market.
- To educate consumers so that they are empowered to make informed choices, borrow responsibly and within their means.
- To enforce affordability assessments within the lending process to prevent reckless lending and/or borrowing.
- To protect consumers who feel they have been unfairly treated in a credit agreement by giving them access to a National Credit Regulator and the National Consumer Tribunal.
- To provide a debt counselling process for consumers who are not able to find a solution for their inability to repay their debts, in conjunction with their credit providers.
OUR VIEW REGARDING THE NCA
Bondpro’s view regarding the NCA
Bondpro has always considered itself to be a responsible lender and welcomes the NCA to support our credit policy and our strategy to become a respected lender in South Africa by, among others, our clients and the communities we work in. We believe we can meet the home loan requirements of our clients and the communities in which we operate and uphold the principles of the NCA.
Bondpro has invested significant time and resources to making the necessary changes to the procedures and charges within its credit processes. In addition, Bondpro staff members have undergone training in terms of the Act. All documentation concerning the Act is constantly being reviewed to ensure it is compliant.
OUR APPROACH TO THE NCA
Bondpro’s approach to the NCA
Bondpro uses a detailed credit evaluation scorecard to assess the level of indebtedness of each applicant. This approach takes into account the income and other debt commitments, as well as repayment history, to ensure that the applicant will not be overburdened.
A major requirement of the NCA is that clients understand all agreements, their rights and obligations, and Bondpro, as a responsible lender, will continue to ensure that all our clients’ rights are protected in this regard.
BONDPRO AND THE NCA
ABOUT THE NCA
The National Credit Act, Act 34 of 2005 ("the NCA")
The NCA became fully operational in South Africa on 1 June 2007.
The NCA replaces the Usury Act, 73 of 1968, the Credit Agreements Act, Act 75 of 1980 and the Integration of Usury Laws Act, 57 of 1996, which was the primary legislation governing the granting of credit within the financial services industry since 1968.
In essence, the NCA is designed to promote a fair and non-discriminatory marketplace in South Africa. As such, Bondpro fully supports the NCA and is doing everything in its power to ensure that the manner in which it grants credit always upholds the intentions and requirements of the legislation, while still meeting the varied lending requirements of all its clients in a responsible manner.
The NCA in brief
The main purposes of the National Credit Act can be summarised as follows:
- To promote a fair, competitive, accessible, equitable and sustainable credit market.
- To educate consumers so that they are empowered to make informed choices, borrow responsibly and within their means.
- To enforce affordability assessments within the lending process to prevent reckless lending and/or borrowing.
- To protect consumers who feel they have been unfairly treated in a credit agreement by giving them access to a National Credit Regulator and the National Consumer Tribunal.
- To provide a debt counselling process for consumers who are not able to find a solution for their inability to repay their debts, in conjunction with their credit providers.
OUR VIEW REGARDING THE NCA
Bondpro’s view regarding the NCA
Bondpro has always considered itself to be a responsible lender and welcomes the NCA to support our credit policy and our strategy to become a respected lender in South Africa by, among others, our clients and the communities we work in. We believe we can meet the home loan requirements of our clients and the communities in which we operate and uphold the principles of the NCA.
Bondpro has invested significant time and resources to making the necessary changes to the procedures and charges within its credit processes. In addition, Bondpro staff members have undergone training in terms of the Act. All documentation concerning the Act is constantly being reviewed to ensure it is compliant.
OUR APPROACH TO THE NCA
Bondpro’s approach to the NCA
Bondpro uses a detailed credit evaluation scorecard to assess the level of indebtedness of each applicant. This approach takes into account the income and other debt commitments, as well as repayment history, to ensure that the applicant will not be overburdened.
A major requirement of the NCA is that clients understand all agreements, their rights and obligations, and Bondpro, as a responsible lender, will continue to ensure that all our clients’ rights are protected in this regard.