The National Credit Act (NCA) came into effect on 1 June 2007 and it sets out what the law is when consumers take loans or buy goods on credit. It also provides for the establishment of the National Credit Regulator (NCR), which monitors activities in the credit market and ensures that credit providers, for example, banks, microlenders or companies selling goods on credit, comply with the NCA.

The National Credit Act (NCA), 2005 has had a major impact on protecting the rights of South African consumers who have entered into credit agreements since this time. The NCA put controls in place which restrict credit marketing practices, ensure that assessments regarding a consumer‘s ability to afford buying goods on credit, are undertaken when they apply for credit, penalise companies who grant credit recklessly, limit interest rates and the total amount that credit providers can charge for other fees including when an account goes into arrears, and regulate credit bureaus and debt counsellors.