The Consumer Protection Act 68 of 2008 (CPA) is one of South Africa’s most important laws for everyday people.
It ensures that businesses, including credit providers, treat consumers fairly and with respect.
When it comes to credit, the CPA works hand-in-hand with the National Credit Act 34 of 2005 (NCA) to prevent misleading or dishonest behaviour by lenders.
Whether you are applying for a loan, using store credit, or managing existing debt, these laws are designed to protect you.
What Is the Consumer Protection Act?
The Consumer Protection Act 68 of 2008 came into effect to promote fair and sustainable markets.
It gives consumers the right to receive honest information and safe products and services.
For anyone using credit, this includes the right to:
- Clear, accurate information about interest rates and repayment terms.
- Protection against deceptive advertising and hidden fees.
- Fair debt collection practices.
- Access to recourse when a credit provider acts unlawfully.
The CPA empowers consumers to make informed decisions and holds businesses accountable when they act unfairly.
Guardians of Fairness
Common Unfair Credit Practices
Unfair credit practices can take many forms. Some of the most common include:
- Misleading marketing: Offering “low-interest” loans that come with undisclosed fees.
- Harassment or intimidation: Aggressive collection calls or visits that violate your dignity.
- Unlawful contract terms: Clauses that unfairly favour the lender or limit your legal rights.
- Overcharging or double billing: Adding costs not clearly disclosed in your agreement.
- Failure to provide documentation: Not giving you a full copy of your credit agreement.
If any of these occur, you have the right to report or challenge the provider’s conduct.
How the CPA and NCA Work Together
While the CPA promotes fairness across all consumer transactions, the National Credit Act (NCA) focuses specifically on credit-related matters.
Together, these two laws ensure that:
- Credit agreements are written in plain language.
- Interest and fees are transparent.
- Consumers are not granted credit they cannot afford.
- There are clear procedures for resolving disputes and complaints.
For example, if you were misled about a loan’s cost or pressured into signing an agreement you didn’t understand, both Acts can be used to protect your rights and seek redress.
What to Do If You Suspect Unfair Credit Practices
If you believe a credit provider has acted unlawfully or unfairly, you can:
- Request clarification in writing from the provider.
- Consult an attorney to review the agreement and assess whether your rights were violated.
- File a complaint with the National Consumer Commission (NCC) or the National Credit Regulator (NCR).
Legal guidance is particularly important when dealing with complex contracts or aggressive debt collection tactics.
remove debt review
Example Case
Consider Ms Dlamini, who applied for a small personal loan.
The lender verbally promised a low interest rate, but when she received the contract, the written terms included hidden administrative fees that doubled her repayment amount.
With legal assistance, Ms Dlamini was able to lodge a formal complaint with the NCR, leading to an investigation and refund of the unlawful charges.
Her case shows the importance of reading every clause carefully, and knowing that you are not powerless when faced with unfair treatment.
Let Us Help You Protect Your Rights
At VHT Attorneys, we help South Africans understand and enforce their consumer rights.
From unfair credit contracts to unlawful debt collection, our team ensures that the law works for you, not against you.
If you believe a credit provider has treated you unfairly, don’t hesitate to seek professional legal advice.
Well done on the excellent manner in which you handling my case. Great communication on your part and always ready to answer any questions I have.
Final Thoughts
The Consumer Protection Act gives you more than just legal protection, it gives you confidence.
By understanding your rights and seeking the right guidance, you can make informed credit decisions and hold providers accountable for their actions.
Protect your financial wellbeing. Know your rights. And if you need help enforcing them, VHT Attorneys is here to assist.
Francois Krause
Candidate legal practitioner
WHO ARE WE AT VHT
VHT Attorneys is a boutique law firm with a large vision. We provide innovative legal solutions with a renowned standard of integrity and confidentiality.
We help our clients:
- Remove Debt Review Status
- Commercial & Corporate Law
- Labour Law
- Dispute Resolution / Litigation
