UNIVERSITY OF SOUTH AFRICA (UNISA)
College of Law
⋄
Consumer Law
Assignment 01 — 2026
⋄
Module Code: COL3704
Module Name: Consumer Law
Assignment No.: 01
Due Date: September 2026
Semester: Semester 2, 2026
Submitted in partial fulfilment of the requirements for Consumer Law (COL3704)
at the University of South Africa.
, UNISA | COL3704 Consumer Law: Assignment 01
Section A: National Credit Act 34 of 2005
Question 1.1
The statement that the National Credit Act 34 of 2005 extensively regulates three types of
transactions aimed at advancing finance, namely moneylending transactions, credit transac-
tions and leasing transactions, tracks the description given by academic commentary on the
historical scope of credit regulation in South Africa rather than a single settled turn of phrase
repeated verbatim in the prescribed judgments. In the prescribed case law for this module the
closest and most authoritative articulation of the Act’s regulatory reach appears in Sebola and
Another v Standard Bank of South Africa Ltd and Another,1 where the Constitutional Court ex-
plains that the National Credit Act replaced the Usury Act and the Credit Agreements Act, the
two statutes that had previously covered money lending transactions and credit instalment
sale and lease agreements in respect of movables, and consolidated the regulation of these
forms of consumer finance into a single, comprehensive statute.
Question 1.2
The statement that a major overhaul of previous credit legislation was essential, that low-
income consumers relied increasingly on commercial credit and many were becoming swamped
with debt, that reform came with the passage of the Act in 2005, and that the Act is weighty
legislation consisting of 173 sections together with three schedules and regulations, is taken
directly from the judgment of the Constitutional Court in Sebola and Another v Standard Bank
of South Africa Ltd and Another.2 Cameron J, writing for the majority, records that for more
than twenty-five years the Usury Act and the Credit Agreements Act covered most of the
field of consumer credit regulation in South Africa, but that this market was poorly suited
to the needs of a transforming, post-apartheid society. He explains that low-income con-
sumers were making increasing use of commercial credit and were at growing risk of over-
indebtedness, and that the legislature responded with the National Credit Act, a substantial
piece of legislation running to 173 sections, three schedules and accompanying regulations.3
1
Sebola and Another v Standard Bank of South Africa Ltd and Another 2012 (5) SA 142 (CC).
2
Sebola and Another v Standard Bank of South Africa Ltd and Another 2012 (5) SA 142 (CC) para 39.
3
Sebola (n 2) para 39.
Page 1 of 6
College of Law
⋄
Consumer Law
Assignment 01 — 2026
⋄
Module Code: COL3704
Module Name: Consumer Law
Assignment No.: 01
Due Date: September 2026
Semester: Semester 2, 2026
Submitted in partial fulfilment of the requirements for Consumer Law (COL3704)
at the University of South Africa.
, UNISA | COL3704 Consumer Law: Assignment 01
Section A: National Credit Act 34 of 2005
Question 1.1
The statement that the National Credit Act 34 of 2005 extensively regulates three types of
transactions aimed at advancing finance, namely moneylending transactions, credit transac-
tions and leasing transactions, tracks the description given by academic commentary on the
historical scope of credit regulation in South Africa rather than a single settled turn of phrase
repeated verbatim in the prescribed judgments. In the prescribed case law for this module the
closest and most authoritative articulation of the Act’s regulatory reach appears in Sebola and
Another v Standard Bank of South Africa Ltd and Another,1 where the Constitutional Court ex-
plains that the National Credit Act replaced the Usury Act and the Credit Agreements Act, the
two statutes that had previously covered money lending transactions and credit instalment
sale and lease agreements in respect of movables, and consolidated the regulation of these
forms of consumer finance into a single, comprehensive statute.
Question 1.2
The statement that a major overhaul of previous credit legislation was essential, that low-
income consumers relied increasingly on commercial credit and many were becoming swamped
with debt, that reform came with the passage of the Act in 2005, and that the Act is weighty
legislation consisting of 173 sections together with three schedules and regulations, is taken
directly from the judgment of the Constitutional Court in Sebola and Another v Standard Bank
of South Africa Ltd and Another.2 Cameron J, writing for the majority, records that for more
than twenty-five years the Usury Act and the Credit Agreements Act covered most of the
field of consumer credit regulation in South Africa, but that this market was poorly suited
to the needs of a transforming, post-apartheid society. He explains that low-income con-
sumers were making increasing use of commercial credit and were at growing risk of over-
indebtedness, and that the legislature responded with the National Credit Act, a substantial
piece of legislation running to 173 sections, three schedules and accompanying regulations.3
1
Sebola and Another v Standard Bank of South Africa Ltd and Another 2012 (5) SA 142 (CC).
2
Sebola and Another v Standard Bank of South Africa Ltd and Another 2012 (5) SA 142 (CC) para 39.
3
Sebola (n 2) para 39.
Page 1 of 6
