LML4807 Assignment 2 2026 Due 2026

UNIVERSITY OF SOUTH AFRICA
College of Law

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BANKING AND USAGE LAW
Reckless Credit under the National Credit Act 34 of 2005
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LML4807


Module Code

Banking and Usage Law


Module Name

Assignment 02 (Semester 1)


Assignment

Reckless Credit Agreements


Assessment

[10 Marks]


Marks

2025


Academic Year

University of South Africa (UNISA)


Institution




Submitted in partial ful
lment of the requirements for LML4807  UNISA

, UNISA | LML4807 Banking & Usage Law  Assignment 02



Contents
Scenario Overview 3

1 Question (a): Types of Reckless Credit Agreements under the NCA 4

Question (a): Types of Reckless Credit Agreements 4
1.1 Legislative Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.2 Type 1: Failure to Conduct a Pre-Agreement Assessment (s 80(1)(a)) . . . . . . . 4

1.3 Type 2: Grant of Credit Despite Negative Assessment Outcome (s 80(1)(b)(i)) . 4

1.4 Type 3: Grant of Credit Despite Over-indebtedness (s 80(1)(b)(ii)) . . . . . . . . 5



2 Question (b): Does the Agreement with Hennie Constitute Reckless Credit? 6

Question (b): Reckless Credit in Hennie's Case 6
2.1 Application of the NCA to the Facts . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.2 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6



3 Question (c): Would the Answer Dier if Hennie Were Fluent in English? 8

Question (c): Eect of English Fluency on the Answer 8
3.1 Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.2 Practical Implication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8



4 Question (d): Powers of the Court or Tribunal in Respect of Each Type of Reck-
less Credit 9

Question (d): Court and Tribunal Powers 9
4.1 Governing Provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

4.2 Powers in Respect of Type 1 (s 80(1)(a)): No Assessment Conducted . . . . . . . 9

4.3 Powers in Respect of Type 2 (s 80(1)(b)(i)): Consumer Lacked Understanding . . 9

4.4 Powers in Respect of Type 3 (s 80(1)(b)(ii)): Over-indebtedness . . . . . . . . . . 10



Reference List 11




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