Cape Town - A new ruling means that all credit providers who charge interest, no matter how small the principal amount, will have to register under the National Credit Act (NCA).
Up to May 11, a person was required to register as a credit provider under the NCA only if the total principal debt owed to that party under all outstanding credit agreements was more than R500 000, or if they were the credit provider under at least 100 credit agreements.
However, the latest Government Gazette has now reduced that threshold to zero, meaning that all credit providers within the definitions of providing credit under the NCA will now have to be properly registered.