In terms of the National Credit Act, a "credit provider" refers to any person or institution that provides credit or loans to consumers. This includes banks, micro-lenders, retailers offering store credit, and any other entity that extends credit to customers.
No, the National Credit Act 34 of 2005 is not the first system to regulate South Africa's credit system. Before the National Credit Act came into effect, South Africa had various regulations and laws governing credit. In 1974, the Usury Act was passed to regulate the maximum interest rates that could be charged on loans. The Usury Act was followed by the Credit Agreements Act (1980) and the Credit Data Act (1983), which aimed to regulate credit agreements and the collection and sharing of credit information, respectively.
However, these earlier regulations were not comprehensive enough to address the modern credit practices and protect consumers adequately. With the evolution of the credit industry and the need for more robust and consumer-oriented regulation, the National Credit Act was enacted in 2005. It introduced a comprehensive framework for the granting, provision, and collection of credit that aligned with international best practices and aimed to promote responsible lending and protect consumers.
Briefly describe “credit provider” in terms of the National Credit Act.
Is the National Credit Act 34 of 2005 the first system to regulate South Africa’s credit system? If not, give a brief summary of historical credit regulations until the enactment of National credit Act.
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