Certainty in regard to the cost of the proposed credit is imperative.

Common to all forms of a credit agreement for the purposes of the National Credit Act is the requirement of payment of a charge, fee or interest in return for granting credit. This covers any consideration or payment made by a consumer to a credit provider for the use of credit.

The overarching objective of the NCA is to ensure that the parties to a credit agreement, especially the consumer, are fully aware of the actual risks and liabilities involved in the proposed transaction (sections 100 to 106). Certainty in regard to the cost of the proposed credit is imperative so that the consumer understands and appreciates the risks and obligations (section 80).

The limitations are intended to protect the consumer from any hidden costs that may arise under the credit agreement. The parties to an NCA credit agreement must quantify the charges, fees or interest and specify the manner in which they are to be paid in the agreement. Charges would not include an uncertain and indeterminate profit share agreed between the parties that may result from a transaction for which the loan money is used.