New NCA Regulations: What the Proposed Changes Mean for South African Consumers
Draft amendments to the National Credit Act regulations could reshape how credit is assessed and how your data is handled. Here is what you need to know.
The National Credit Act (NCA) has been the backbone of consumer credit protection in South Africa since 2005. It is the law that gave us debt counselling, set rules for how lenders can assess your ability to repay, and established the National Credit Regulator to keep the industry in check. Now, important changes are on the way.
In August 2025, the Minister of Trade, Industry and Competition published draft amendments to several key NCA regulations. These changes aim to modernise how credit providers assess affordability, broaden the types of data credit bureaus can collect, and strengthen protections for consumers. Let us break down what this means in practical terms.
Stricter affordability checks before you borrow
One of the most significant proposed changes targets how credit providers decide whether you can afford a loan. Under the current rules, lenders look at your income, existing debts, and basic living expenses. The draft amendments would tighten these affordability assessments further.
Credit providers would be required to look more closely at your discretionary income — that is, what is left after all essential expenses and existing debt repayments. The idea is to prevent lenders from approving credit that a consumer cannot realistically afford, which is one of the root causes of over-indebtedness in the first place.
For consumers, this is largely good news. While it might mean that getting approved for credit becomes a bit harder, it should also mean fewer people end up in situations where they cannot keep up with their repayments.
More data flowing to credit bureaus
The amendments also propose expanding where credit bureaus can get information about you. Currently, credit bureaus mainly receive data from credit providers like banks and retailers. Under the new rules, they would also be able to receive information from government departments, courts, utility providers, insurance companies, debt collectors, and even educational institutions.
This is a double-edged sword. On one hand, a more complete picture of your financial behaviour could work in your favour — for example, if you have always paid your insurance or utility bills on time, that positive history could boost your credit profile. On the other hand, it means that late payments on non-credit accounts could also start affecting your credit standing.
What this means for you: If these changes go through, it will become even more important to stay on top of all your financial obligations — not just your loans and credit cards, but also your utility bills, insurance premiums, and other accounts.
Better rules for small business owners
The draft regulations also introduce new provisions for small business credit. When a small business applies for a loan, the credit provider would need to consider not only the business's finances but also the financial position of the people behind the business — such as the owner or directors.
This is an important change because many small businesses in South Africa are closely tied to the personal finances of their owners. The new rules aim to give a more realistic picture of whether a small business can actually service the debt it is applying for, which should help prevent situations where business loans become a personal financial crisis.
Debt intervention for low-income earners
It is also worth noting an earlier amendment that many consumers may not be aware of. The National Credit Amendment Act of 2019 introduced a free debt intervention process for consumers who earn R7,500 or less per month and owe less than R50,000 in unsecured debt. If you fall into this category, you can apply to the National Credit Regulator for help — at no cost to you.
This is separate from the standard debt counselling process and is specifically designed for lower-income South Africans who may not be able to afford the fees associated with private debt counselling.
Your rights under the NCA: Remember that debt review is a legal right, not a privilege. Under Section 129 of the NCA, credit providers must send you a formal notice before they can take legal action, giving you 10 business days to respond — including applying for debt counselling.
What happens next?
The draft regulations went through a public comment period in September 2025. The final regulations are expected to be published once the Minister has considered all submissions. While the exact timeline is not certain, these changes represent a clear signal that the government is taking consumer protection in the credit market seriously.
For consumers who are currently under debt review, these changes are unlikely to affect your existing repayment plan. But for anyone thinking about applying for credit in the future, or for those considering debt counselling, these new rules could make it both harder to get into unmanageable debt and easier to get help when you need it — and that is a step in the right direction.