Abstract
Affordability Assessment Regulations (AARs) adopted under the National Credit Act 34 of 2005 (NCA) seek to prevent reckless lending and over-indebtedness by enforcing stringent affordability checks by credit providers. These regulations, however, may inadvertently restrict credit access for low-income, self-employed, and informally employed individuals. This dissertation explores the unintended consequences of the AAR, including reduced market competition and exacerbated financial inequality, as well as its effect on credit providers’ lending behaviours. Through an analysis of legal precedents, regulatory frameworks, and alternative credit assessment approaches, the research underscores the critical balance needed between consumer protection and financial inclusion. This balance is essential for fostering a sustainable and accessible credit market that supports economic mobility without compromising financial stability. Rigid application of the AAR may, absurdly, hinder the NCA’s broader goal of a fair and inclusive credit market. Findings suggest that flexible affordability assessments and inclusive credit products are essential to mitigate the AAR’s restrictive effects, thus promoting equitable access to credit while upholding responsible lending standards.