Credit Access and Consumer Rights Quiz

Play an AI-generated podcast conversation about this lesson

What were some of the problems faced by the majority of the population in South Africa before the implementation of the National Credit Act 34 of 2005?

The majority of the population had no access to credit facilities or limited access to credit channels, borrowed money from loan sharks at extremely high interest rates, entered into unfair agreements, and suffered many prejudices such as forfeiture of deposit on non-payment, seizure of goods without notice, and no returns or cancellations on goods.

What was the purpose of the National Credit Act 34 of 2005?

The purpose of the National Credit Act was to promote and advance the social and economic welfare of citizens, promote a fair, competitive, and accessible credit market, and regulate consumer credit.

Why was there an urgent need for credit regulation in South Africa?

There was an urgent need for credit regulation to control the credit industry and protect consumers from being exploited by businesses, as well as to assist the general population in managing their credit activities to prevent over-indebtedness.

What were some of the ways in which consumers were being exploited before the implementation of the National Credit Act 34 of 2005?

<p>Consumers were exploited by borrowing money from loan sharks at extremely high interest rates, entering into unfair agreements, and suffering prejudices such as forfeiture of deposit on non-payment, seizure of goods without notice, and no returns or cancellations on goods.</p> Signup and view all the answers

In what year was the National Credit Act 34 of 2005 promulgated and what was its purpose?

<p>The National Credit Act 34 of 2005 was promulgated to give effect to the Constitution and its purpose was to promote and advance the social and economic welfare of citizens, promote a fair, competitive, and accessible credit market, and regulate consumer credit.</p> Signup and view all the answers