Credit Access and Consumer Rights Quiz

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.

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.

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.

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.

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.