COL3704
Assignment 2 Semester 2 2025
2 2025
Unique Number:
Due date: 9 September 2025
QUESTION 1
The response provided by Co-pilot is incomplete because it focuses narrowly on the case of
Kaknis v Absa Bank Ltd & Another while failing to link the discussion directly to the purposes
of the National Credit Act 34 of 2005 (NCA). Although case law is important, the question
requires an evaluation of whether the stated purpose of the Act, as set out in section 3, is
being achieved. Section 31 sets out a broad framework which includes consumer protection,
responsible lending, transparency, fairness, and accessibility in the credit market. An
effective answer must therefore critically evaluate these stated goals against practice.
Section 3(a) highlights the promotion of a credit market that is accessible to all South
Africans, especially those historically excluded. This shows that the Act aims not only at
regulating lenders but also at correcting the past injustices of economic exclusion. Many
consumers, especially from disadvantaged communities, now have greater access to credit
under regulated conditions, which aligns with this purpose.1
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
The response provided by Co-pilot is incomplete because it focuses narrowly on the
case of Kaknis v Absa Bank Ltd & Another while failing to link the discussion directly
to the purposes of the National Credit Act 34 of 2005 (NCA). Although case law is
important, the question requires an evaluation of whether the stated purpose of the
Act, as set out in section 3, is being achieved. Section 31 sets out a broad framework
which includes consumer protection, responsible lending, transparency, fairness,
and accessibility in the credit market. An effective answer must therefore critically
evaluate these stated goals against practice.
Section 3(a) highlights the promotion of a credit market that is accessible to all South
Africans, especially those historically excluded. This shows that the Act aims not only
at regulating lenders but also at correcting the past injustices of economic exclusion.
Many consumers, especially from disadvantaged communities, now have greater
access to credit under regulated conditions, which aligns with this purpose.2
Section 3(b) provides for consistent treatment of credit products and providers. This
creates certainty in the market and prevents unfair discrimination between
consumers and lenders. The Act further encourages responsible borrowing and
discourages reckless lending, which is critical in protecting consumers from over-
indebtedness.3 Co-pilot’s answer fails to acknowledge this balancing function, which
is central to the Act.
Section 3(d) stresses the promotion of equity by balancing the rights and
responsibilities of credit providers and consumers. This ensures that both parties act
responsibly in the credit relationship.4 Similarly, section 3(e) addresses power
imbalances through consumer education, disclosure of standardised information,
and protection against fraud or deception by credit providers.5 These mechanisms
are crucial to ensure informed decision-making by consumers, a key feature missing
in Co-pilot’s analysis.
1
National Credit Act 34 of 2005
2
Ibid, s 3(a).
3
Ibid, s 3(b).
4
Ibid, s 3(d).
5
Ibid, s 3(e).
Assignment 2 Semester 2 2025
2 2025
Unique Number:
Due date: 9 September 2025
QUESTION 1
The response provided by Co-pilot is incomplete because it focuses narrowly on the case of
Kaknis v Absa Bank Ltd & Another while failing to link the discussion directly to the purposes
of the National Credit Act 34 of 2005 (NCA). Although case law is important, the question
requires an evaluation of whether the stated purpose of the Act, as set out in section 3, is
being achieved. Section 31 sets out a broad framework which includes consumer protection,
responsible lending, transparency, fairness, and accessibility in the credit market. An
effective answer must therefore critically evaluate these stated goals against practice.
Section 3(a) highlights the promotion of a credit market that is accessible to all South
Africans, especially those historically excluded. This shows that the Act aims not only at
regulating lenders but also at correcting the past injustices of economic exclusion. Many
consumers, especially from disadvantaged communities, now have greater access to credit
under regulated conditions, which aligns with this purpose.1
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
The response provided by Co-pilot is incomplete because it focuses narrowly on the
case of Kaknis v Absa Bank Ltd & Another while failing to link the discussion directly
to the purposes of the National Credit Act 34 of 2005 (NCA). Although case law is
important, the question requires an evaluation of whether the stated purpose of the
Act, as set out in section 3, is being achieved. Section 31 sets out a broad framework
which includes consumer protection, responsible lending, transparency, fairness,
and accessibility in the credit market. An effective answer must therefore critically
evaluate these stated goals against practice.
Section 3(a) highlights the promotion of a credit market that is accessible to all South
Africans, especially those historically excluded. This shows that the Act aims not only
at regulating lenders but also at correcting the past injustices of economic exclusion.
Many consumers, especially from disadvantaged communities, now have greater
access to credit under regulated conditions, which aligns with this purpose.2
Section 3(b) provides for consistent treatment of credit products and providers. This
creates certainty in the market and prevents unfair discrimination between
consumers and lenders. The Act further encourages responsible borrowing and
discourages reckless lending, which is critical in protecting consumers from over-
indebtedness.3 Co-pilot’s answer fails to acknowledge this balancing function, which
is central to the Act.
Section 3(d) stresses the promotion of equity by balancing the rights and
responsibilities of credit providers and consumers. This ensures that both parties act
responsibly in the credit relationship.4 Similarly, section 3(e) addresses power
imbalances through consumer education, disclosure of standardised information,
and protection against fraud or deception by credit providers.5 These mechanisms
are crucial to ensure informed decision-making by consumers, a key feature missing
in Co-pilot’s analysis.
1
National Credit Act 34 of 2005
2
Ibid, s 3(a).
3
Ibid, s 3(b).
4
Ibid, s 3(d).
5
Ibid, s 3(e).
