COL3704
ASSIGNMENT 3 SEMESTER 1 2022
UNIQUE NUMBER:
SECTION A and B
QUESTION 1
A credit agreement is reckless if, at the time the agreement was concluded:
• the credit provider failed to conduct the required assessment
• the credit provider conducted the required assessment, and entered into a credit
agreement with the consumer, even though the outcome of the assessment
showed that:
o the consumer did not understand or appreciate the obligations under the credit
agreement, or
o the consumer would become over-indebted as a result of entering into that
contract.
The above do not apply to credit agreements in relation to:
• a school loan;
• a student loan;
• an emergency loan;
• a public interest credit agreement;
• a pawn transaction;
• an incidental credit agreement; and
• a temporary increase in the credit limit under a credit facility.
The credit provider must notify the NCR within 30 days upon conclusion of the
following credit agreements:
ASSIGNMENT 3 SEMESTER 1 2022
UNIQUE NUMBER:
SECTION A and B
QUESTION 1
A credit agreement is reckless if, at the time the agreement was concluded:
• the credit provider failed to conduct the required assessment
• the credit provider conducted the required assessment, and entered into a credit
agreement with the consumer, even though the outcome of the assessment
showed that:
o the consumer did not understand or appreciate the obligations under the credit
agreement, or
o the consumer would become over-indebted as a result of entering into that
contract.
The above do not apply to credit agreements in relation to:
• a school loan;
• a student loan;
• an emergency loan;
• a public interest credit agreement;
• a pawn transaction;
• an incidental credit agreement; and
• a temporary increase in the credit limit under a credit facility.
The credit provider must notify the NCR within 30 days upon conclusion of the
following credit agreements:
