Credit rights explainedDid you know that South Africa has one of the most comprehensive, amazing constitutions in the world? Over two million South Africans participated in the making of our constitution, which is part of our legacy that we should celebrate this coming Madiba Day. As a consumer, you are protected by the laws governed by our Constitution. The National Credit Act requires of credit providers to adhere to a number of laws that are in your best interest.
Know your credit rights! Here are five credit laws that you should take note of:1. The right to apply for credit The National Credit Act (NCA) gives you the right to apply for credit. All consumers must be treated equally in relation to one another when credit providers assess your application, determine rates/fees and compile and enforce the credit agreement. Banks and credit providers are pleased to receive and evaluate your application, but they are allowed to approve or reject the application. They may also use their own evaluation method provided that the method is not in conflict with the National Credit Act (NCA). If you believe that your application has been rejected due to unlawful discriminatory practices, you have the right to approach the equality court or the National Credit Regulator. 2. The right to know why credit has been refused You may ask the credit provider or bank to explain, in writing, their main reasons for:
- Refusing your application for a new loan/credit
- Refusing your application for an increased limit on existing loan/credit
- Refusing to renew a renewable loan/credit (such as a credit card)
- Offering a lower credit limit than the limit you applied for
- Reducing your existing credit limit
- Ordinary mail
- Printable web-page
The content of this post was developed by Compuscan Academy – the 2013 winner of the BANKSETA Skills@Work Award for the accredited training provider category.