1
CONSUMER STUDIES
GRADE 12
TERM 2
MIND MAPS AND ACTIVITIES
TOPIC: THE CONSUMER
FOOD AND NUTRITION
CLOTHING
, 2
THE
CONSUMER
,The NCA (National Credit Act) The NCR (National Credit Regulator)
• Makes credit providers take more responsibility for their actions • Functions of the NCR
• Look out for the consumer interest in the following way: a) Educate consumers of their rights and regulations in
a) Promote the social and financial interests of S.A. consumers. the new Act.
b) Promote a fair but competitive credit market. b) Monitor and control the credit market and the cost
c) Ensure that consumers know exactly what is included of credit identification.
in their credit contracts. c) Advise government on policy and
d) Ensure that credit is available to all – no discrimination. legislation concerning credit.
e) Protect consumers from unfair business practices d) Investigated all credit related complaints.
with regard to credit
• Credit may NOT be offered to people who cannot afford it. PYRAMID SCHEMES
• The following is requested by the NCA: • Illegal in South Africa
a) Credit providers must do a thorough check on
• Do not sell a product it is only money that is invested in
the consumers ability to repay. a dream or an idea
b) Consumers must give complete information about • Members lose money
their income and debt responsibilities.
• Scheme collapses and the person on top disappear
c) Debt counselling services are available for the with all the money
consumers who are in financial difficulty.
• Recruiters must recruit more people that is how
d) The language used in credit agreements must be simple the people on top makes it money
and easy to understand.
e) The cost of the credit being offered must be stipulated.
f) Interest and fees charged by the credit providers • Credit providers are not allowed to lend any sum
is regulated, even micro - lenders are regulated. of money to just anybody
• The following credit agreements are covered by the NCA: • They have to assess a consumer’s ability to take on the
a) Credit cards and bank overdrafts debt
b) Loans and mortgages bonds and micro loans • They have to ensure consumer understands
his/her responsibilities regarding the credit
c) Store accounts and Hire to purchase (installment
sales transactions) • Consumers MUST therefore declare all their debt
d) Vehicle Finances and expenses when applying for new credit
The aim of these policies and practices If this is not happening then we say credit providers are
guilty of RECKLESS LENDING
To educate and protect consumers from illegal and
dishonest practices. MICRO-LENDING
•
Consumer Protection •
Smaller loans to maximum of R10,000.00
Strict regulations regarding this type of lending
• To help limit “loan shark” activities
Policies and Practices • To protect lender and borrower
, 4
GRADE 12 BASELINE ASSESSMENT – THE CONSUMER
1. What is the aim of the consumer protection policies and practices? (1)
2. How can the national credit act protect the consumers? (3)
3. Study the image below and answer the questions that follow.
3.1 Identify the scheme that is illustrate in the image. (1)
3.2 Give a short explanation of this scheme. (3)
4. List the right and responsibilities a consumer have when they enter a
credit agreement. (7)
TOTAL 15
CONSUMER STUDIES
GRADE 12
TERM 2
MIND MAPS AND ACTIVITIES
TOPIC: THE CONSUMER
FOOD AND NUTRITION
CLOTHING
, 2
THE
CONSUMER
,The NCA (National Credit Act) The NCR (National Credit Regulator)
• Makes credit providers take more responsibility for their actions • Functions of the NCR
• Look out for the consumer interest in the following way: a) Educate consumers of their rights and regulations in
a) Promote the social and financial interests of S.A. consumers. the new Act.
b) Promote a fair but competitive credit market. b) Monitor and control the credit market and the cost
c) Ensure that consumers know exactly what is included of credit identification.
in their credit contracts. c) Advise government on policy and
d) Ensure that credit is available to all – no discrimination. legislation concerning credit.
e) Protect consumers from unfair business practices d) Investigated all credit related complaints.
with regard to credit
• Credit may NOT be offered to people who cannot afford it. PYRAMID SCHEMES
• The following is requested by the NCA: • Illegal in South Africa
a) Credit providers must do a thorough check on
• Do not sell a product it is only money that is invested in
the consumers ability to repay. a dream or an idea
b) Consumers must give complete information about • Members lose money
their income and debt responsibilities.
• Scheme collapses and the person on top disappear
c) Debt counselling services are available for the with all the money
consumers who are in financial difficulty.
• Recruiters must recruit more people that is how
d) The language used in credit agreements must be simple the people on top makes it money
and easy to understand.
e) The cost of the credit being offered must be stipulated.
f) Interest and fees charged by the credit providers • Credit providers are not allowed to lend any sum
is regulated, even micro - lenders are regulated. of money to just anybody
• The following credit agreements are covered by the NCA: • They have to assess a consumer’s ability to take on the
a) Credit cards and bank overdrafts debt
b) Loans and mortgages bonds and micro loans • They have to ensure consumer understands
his/her responsibilities regarding the credit
c) Store accounts and Hire to purchase (installment
sales transactions) • Consumers MUST therefore declare all their debt
d) Vehicle Finances and expenses when applying for new credit
The aim of these policies and practices If this is not happening then we say credit providers are
guilty of RECKLESS LENDING
To educate and protect consumers from illegal and
dishonest practices. MICRO-LENDING
•
Consumer Protection •
Smaller loans to maximum of R10,000.00
Strict regulations regarding this type of lending
• To help limit “loan shark” activities
Policies and Practices • To protect lender and borrower
, 4
GRADE 12 BASELINE ASSESSMENT – THE CONSUMER
1. What is the aim of the consumer protection policies and practices? (1)
2. How can the national credit act protect the consumers? (3)
3. Study the image below and answer the questions that follow.
3.1 Identify the scheme that is illustrate in the image. (1)
3.2 Give a short explanation of this scheme. (3)
4. List the right and responsibilities a consumer have when they enter a
credit agreement. (7)
TOTAL 15
