# Regulatory Compliance Category > National Credit Act Forum >  NCA "hampers school fee policy"

## Eugene

THE National Credit Act, promulgated this year, was affecting the way schools policed the payment of fees, said Dr Jane Hofmeyr , executive director of the Independent Schools Association of Southern Africa (Isasa), yesterday. 

The act had effectively put a stop to the practice of giving discounts to parents who paid in full at the start of the year or penalising in monetary terms those who did not pay on time, she said.

Full report on Business Day: Article

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## Dave A

I have received this email information request looking for more specific information.

Need Help
How does the NCA affect or impact on a private school that allows its parents (debtors) payment of school fees over 6 to 10 months.  No interest is charged for overdue accounts.  Also, a discount is allowed if account is settled by 28 Feb of the year.

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## Eugene

Dave, I do not think the deferral of payment over a period of 6 to 10 months without the charging of interest on overdue accounts will bring the agreement within the ambit of the NCA. The discount, if settled before 28 February of the year, might be construed as a credit agreement as it might very well be considered as a "discounted" transaction in terms of the NCA.

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## Dave A

We share the same thought about the discount - this business of prompt payment discounts being seen as discount transactions does seem troublesome. If there is anything that needs to be revisited in the NCA, that would be it.

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## Eugene

Dave, I've gone though my notes on the NCA and it seems that there are no clear defined guidelines regarding "discounted" transactions apart of what is baiscally defined in the definitions of the NCA. A thought: if the school were to hold a promotion ending at 28 February for payment of school fees (at a "special" price), how does that differ from the normal retail adverts offering "reduced" prices for a certain period of the promotion? I will look into this some more...

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## Eugene

I just found something interesting. It was notes on a Conference held by the Student Accounts Administrators Forum in July this year where they had Reana Steyn and Obed Tongwane (legal advisors to the NCR) to answer some questions. One of them were:

Q: Institutions may need to include two quotes, e.g. if the account is overdue, interest will be charged, whereas if the student settles earlier, an early settlement discount will apply.  
A: Early settlement discount is not regulated by the NCA. 

Now, I'm really confused! Will have to do some more resaerch on this one.

Full report available on: hesa.org

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