COL3704
ASSIGNMENT 3 2024
UNIQUE NO.
DUE FATE: 2024
, lOMoARcPSD|21997160
SECTION A & B
QUESTION 1
1. One example of unsecured credit is paying for groceries using a credit
card. When it comes to credit cards, credit is extended based on the
creditworthiness of the cardholder; unsecured credit, on the other hand, is
not backed by collateral (like home loans or auto loans).
2. Living above one's means can lead to debt accumulation, stress related to
money, lowered credit ratings, and even bankruptcy.
3. Credit card debt and other high-interest loans should be paid off first since
they can quickly mount up and become unmanageable, according to the
video.
4. Borrowing from a loan shark leads to extremely high-interest rates,
harassment and threats from the loan sharks, increased debt with little
chance of repayment and illegal consequences e.g. having your identity
documents withheld by the loan sharks.
5. Options available to an overindebted consumer include seeking debt
counselling, debt consolidation, negotiating with creditors for lower
payments or entering debt repayment plans.
SECTIONC
QUESTION1
The purpose of the Consumer Protection Act is to protect the rights of consumers
and ensure fair trade practices in the marketplace. The Consumer Protection Act
(CPA) was created to protect consumers from unfair or deceptive business practices.
It also aims to provide ways for consumers to seek redress in case of any issues.
Two practical examples of the Act's purposes are: misleading advertising: The Act
forbids businesses from engaging in false or misleading advertising. If a company
advertises a product as having certain features or benefits that it does not actually
possess, consumers have the right to seek redress under the Act. Examples include:
if a smartphone manufacturer claims that their device has a long-lasting battery life,
but it only lasts a few hours, customers can use the Act to make a complaint and
request reimbursement or compensation.
Product safety and quality: The Act guarantees consumers the freedom to buy goods
that are both safe to use and of a reasonable quality. A customer may use the
provisions of the Consumer Protection Act to request a replacement, repair, or refund
if they purchase a product that is unsafe or faulty. For example, if a customer buys a
ASSIGNMENT 3 2024
UNIQUE NO.
DUE FATE: 2024
, lOMoARcPSD|21997160
SECTION A & B
QUESTION 1
1. One example of unsecured credit is paying for groceries using a credit
card. When it comes to credit cards, credit is extended based on the
creditworthiness of the cardholder; unsecured credit, on the other hand, is
not backed by collateral (like home loans or auto loans).
2. Living above one's means can lead to debt accumulation, stress related to
money, lowered credit ratings, and even bankruptcy.
3. Credit card debt and other high-interest loans should be paid off first since
they can quickly mount up and become unmanageable, according to the
video.
4. Borrowing from a loan shark leads to extremely high-interest rates,
harassment and threats from the loan sharks, increased debt with little
chance of repayment and illegal consequences e.g. having your identity
documents withheld by the loan sharks.
5. Options available to an overindebted consumer include seeking debt
counselling, debt consolidation, negotiating with creditors for lower
payments or entering debt repayment plans.
SECTIONC
QUESTION1
The purpose of the Consumer Protection Act is to protect the rights of consumers
and ensure fair trade practices in the marketplace. The Consumer Protection Act
(CPA) was created to protect consumers from unfair or deceptive business practices.
It also aims to provide ways for consumers to seek redress in case of any issues.
Two practical examples of the Act's purposes are: misleading advertising: The Act
forbids businesses from engaging in false or misleading advertising. If a company
advertises a product as having certain features or benefits that it does not actually
possess, consumers have the right to seek redress under the Act. Examples include:
if a smartphone manufacturer claims that their device has a long-lasting battery life,
but it only lasts a few hours, customers can use the Act to make a complaint and
request reimbursement or compensation.
Product safety and quality: The Act guarantees consumers the freedom to buy goods
that are both safe to use and of a reasonable quality. A customer may use the
provisions of the Consumer Protection Act to request a replacement, repair, or refund
if they purchase a product that is unsafe or faulty. For example, if a customer buys a
