HomeChoice has always strived to offer you credit in the most responsible way possible. With the introduction of the National Credit Act (NCA) on 1 June 2007, this became more apparent than ever.

As a HomeChoice customer, you can rest assured your buying rights are always protected. We want to shed some light on exactly what the NCA is all about.

What is the NCA?

The NCA aims to govern the manner in which all credit providers – such as shops, banks and other financial institutions – offer credit to you, the consumer. Essentially, it is a move to ensure that before getting access to credit, you are able to afford the product/s you are purchasing, or pay back the loan you are taking, thus offering protection against unscrupulous lenders who take their customers for a nasty ride without them knowing.

Are there implications for you?

The answer is, yes. As a responsible credit provider, HomeChoice is 100% NCA compliant. This means we are required to undertake what is known as an affordability assessment every time you make a purchase with us.

This simple process will require you to volunteer the following information:

■ Your gross monthly income – i.e. the amount you are paid before tax and other deductions.
■ Your total monthly expenses – including things like your rent/bond payments, monthly accounts, groceries, etc.

What are the benefits?

Aside from ensuring you don’t get drawn into a cycle of unmanageable debt, by supplying the required information you will continue to receive the maximum amount of credit you deserve as a HomeChoice customer.

What will you see?

1. Catalogues and promotional material
The instalment amounts you see in your catalogue or product flyers reflect the maximum instalment payable for a particular item. However, depending on the day you place your order, your instalment may be less than the one advertised! The reason for this is the NCA requires that we calculate the interest on your account daily, for your benefit.

2. Invoices and monthly statements
You will get a breakdown of exactly what you are paying for each month, in terms of instalments, fees and charges. Each amount will be clearly reflected on your invoice and monthly statement, along with the total amount due.

Depending on the day you pay your instalment each month (and whether you overpay or underpay) your interest charge may vary slightly from month to month. Therefore, it is important that you pay your account by the date stipulated on your statement.