Understanding the NCA (F&I and Loan Consultants)

The National Credit Act No 34 of 2005 was passed by Parliament on the 10th of March 2006. It is designed to achieve a number of objectives, most of which are to benefit and protect the consumer. The aim is to introduce a single, functional system of regulation that will apply to all credit activities, thereby ensuring that all credit providers and credit consumers are treated equally.

Broadly, the Act aims to reduce reckless credit behaviour, both by credit providers and consumers and the level of over-indebtedness in South Africa.

What will this Short Course enable you to do?

Successful candidates qualify for a NCA card, which is a legal requirement for most of the above industry players.

Who should apply?

Employees of credit providers and credit agents, including those in the motor industry.

Content

Learning Unit 1
An overview of the NCA

  • Explain the purpose of the NCA
  • Describe the main functions and responsibilities of the following role players:
    • Consumers
    • Credit providers; and
    • Agents

Learning Unit 2
Scope and application of the NCA

  • Explain what a credit agreement is.
  • Classify the different categories of credit agreements.
  • Understand who and what the National Credit Act applies to.
  • Describe the credit agreements that the NCA does not apply to.
  • Explain the limited relevance of the NCA with regards to credit agreements in respect of which the consumer is a juristic person, as well as limit relevance to incidental credit agreements.

Learning Unit 3
Types of credit agreements

  • Distinguish between the different types of credit agreements, including:
    • Credit facility
    • Credit transaction
    • Credit guarantee
    • Combination of agreements

Learning Unit 4
Rights of consumers

  • Understand the consumer’s right with regards to credit.
  • Understand the consumer’s right with regards to confidentiality, personal information and credit records.

Learning Unit 5
Credit and affordability assessment

  • Explain the concept of over-indebtedness and reckless credit.
  • Recognise the process and requirements pertaining to credit and affordability assessments.

Learning Unit 6
Credit documentation

  • List the credit agreements that are prohibited in terms of the NCA.
  • Describe the provisions that are not allowed to be included in a credit agreement.
  • Explain the requirements for small, intermediate and large quotations as set out in the NCA.
  • Describe the information that must be contained in small, intermediate and large credit agreements.

Learning Unit 7
Rates and fees

  • Describe the permissible rates and fees associated with a credit agreement.
  • Understand the fees that may be added to the principal debt of credit transactions.

Learning Unit 8
Marketing and advertising

  • Understand the obligations and requirements regarding marketing and advertising practices, including:
    • Negative option marketing;
    • Direct marketing and sale of credit at home or work; and
    • Advertising practices.
Learning Material

Students will have online access to their study material which will include a study guide, self-assessments and relevant additional resources.

Accreditation and Certification

Learners will receive a MBSE certificate after successful completion of the course.
They will also receive a NCA card that is necessary for Finance and Insurance brokers (F&I).

Assessments

After studying the material, the learner will complete an online Final Assessment.
60% is required to be competent.