, LPL4801 Assignment 1 (COMPLETE ANSWERS) Semester
2 2025 – DUE 29 August 2025; 100% correct solutions and
explanations.
(A) – Applicability of the National Credit Act (NCA)
1. Purpose and Scope of the NCA
The National Credit Act 34 of 2005 (NCA) was enacted to
promote a fair, transparent, and accessible credit market in South
Africa. Its main objectives (section 3) are:
To protect consumers against reckless lending and over-
indebtedness,
To ensure responsible credit granting,
To promote equitable access to credit, and
To regulate the relationship between credit providers
(businesses such as banks, retailers, and companies like
Luxury Pools) and consumers (individuals like Patricia).
For the NCA to apply, the agreement in question must fall within
the statutory definition of a credit agreement and must not fall
under any exclusion in section 4(2).
2. Requirements for Applicability
There are two key statutory requirements for an agreement to fall
under the NCA:
1. Parties must be dealing at arm’s length
2 2025 – DUE 29 August 2025; 100% correct solutions and
explanations.
(A) – Applicability of the National Credit Act (NCA)
1. Purpose and Scope of the NCA
The National Credit Act 34 of 2005 (NCA) was enacted to
promote a fair, transparent, and accessible credit market in South
Africa. Its main objectives (section 3) are:
To protect consumers against reckless lending and over-
indebtedness,
To ensure responsible credit granting,
To promote equitable access to credit, and
To regulate the relationship between credit providers
(businesses such as banks, retailers, and companies like
Luxury Pools) and consumers (individuals like Patricia).
For the NCA to apply, the agreement in question must fall within
the statutory definition of a credit agreement and must not fall
under any exclusion in section 4(2).
2. Requirements for Applicability
There are two key statutory requirements for an agreement to fall
under the NCA:
1. Parties must be dealing at arm’s length
