Consumer Protection: Credit & Redress is one of 9 topics in the Grade 11 Consumer Studies CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. Which body must all credit providers register with under the National Credit Act?
The National Credit Regulator (NCR)
The South African Bureau of Standards (SABS)
The National Consumer Forum (NCF)
The South African National Consumer Union (SANCU)
Answer: The National Credit Regulator (NCR) — All credit providers must register with the National Credit Regulator (NCR), the body responsible for overseeing and enforcing the NCA.
Easy
2. What is "reckless lending" under the National Credit Act?
Granting credit to a consumer without properly assessing whether they can afford to repay it, or despite knowing they are already over-indebted
Charging the maximum legally permitted interest rate on a loan
Offering credit only to consumers with an excellent credit history
Providing consumers with information about a credit agreement in plain language
Answer: Granting credit to a consumer without properly assessing whether they can afford to repay it, or despite knowing they are already over-indebted — Reckless lending occurs when a credit provider grants credit without properly assessing affordability, or despite knowing the consumer is already over-indebted, and is prohibited under the NCA.
Medium
3. Name the formal process available to an over-indebted consumer under the NCA, involving a registered professional negotiating a restructured repayment plan with credit providers.
Answer: debt counselling — Debt counselling is the formal NCA process where a registered debt counsellor assesses an over-indebted consumer and negotiates a restructured repayment plan with their credit providers.
