The Business Reports reporter By Samantha Enslin-Payne:

“The National Credit Regulator (NCR) is honing in on clothing retailers to check their compliance with the National Credit Act.

Gabriel Davel, chief executive of the NCR, said yesterday: “There are a couple of retailers we have issues with. We are doing a conduct review at four retailers.”

He declined to name them but said the NCR would examine the retailers’ upfront disclosure to consumers who applied for store cards.

The act stipulates that when applying for credit, a consumer must be told of the prevailing interest rate, fees, insurance and any other costs associated with the credit so they can make an informed decision.

In the case of a store card, which could have repayment options of six, 12 or 24 months, a customer should be told what the worst case scenario would be in terms of the total monthly repayment if the full limit on the card was used.”

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