The National Credit Act (NCA) comes into effect on 1 June this year and fears have been expressed that it could hamper housing development if financial institutions set unreasonably strict requirements for applicants to qualify for project finance, or that the checking of the credit exposure of future borrowers, as required by the Act, will slow down home-loan approvals, resulting in lost sales. The NCA has responded by saying that one of the main purposes of the Act is to remove discrimination of any kind from the process of credit allocation.
Over-indebtedness or project viability would therefore be the only acceptable grounds for the refusal of credit. Therefore, if developers or other consumers feel that unfair requirements are being set, or that credit contracts are trying to circumvent the new legislation, they can report it to the NCR.
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