⋆ • ⋆
CRM2601: Credit Management II
OCT/NOV Examination 2026 Revision Guide
Covering Past Papers: OCT/NOV 2023, OCT/NOV 2024 & OCT/NOV 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[B] South African Credit Law & Management [B]
[B]Open Exam Revision Guide
CRM2601
Module Code:
Credit Management II
Module Name:
OCT/NOV 2026 (Covers 2023–2025)
Exam Period:
Finance, Risk & Banking
Department:
100 marks per paper
Total Marks:
Study the NCA thoroughly. Understand, don’t just memorise. Real exam questions
test application.
• Exam Revision Notes | CRM2601 | OCT/NOV 2026
,CRM2601 | Exam Revision 2023–2025 Credit Management II
OCT/NOV 2025 EXAMINATION PAPER
CRM2601 – Credit Management II | Total: 100 Marks
Question 1 [25 marks]
(a) [10 marks]
Question: Critically discuss the purpose and objectives of the National Credit Act 34 of
2005 (NCA), with reference to specific sections of the Act. In your answer, explain how
the NCA seeks to protect consumers and promote responsible credit granting.
Answer:
[Key] Key Concept
The National Credit Act 34 of 2005 (NCA) came into full effect on 1 June 2007.
It replaced the Usury Act 73 of 1968, the Credit Agreements Act 75 of 1980, and their
associated exemption notices. Its primary aim is to create a single, comprehensive legal
framework governing consumer credit in South Africa.
Purpose of the NCA (Section 3):
Section 3 of the NCA sets out the following purposes:
• Promote and advance the social and economic welfare of South Africans, espe-
cially low-income earners and historically disadvantaged persons.
• Promote a fair, transparent, competitive, sustainable, responsible, efficient,
effective, and accessible credit market.
• Promote responsible credit granting and use, and prevent reckless lending.
• Address and prevent over-indebtedness of consumers.
• Provide a consistent enforcement framework through the National Credit Regulator
(NCR) and National Consumer Tribunal (NCT).
Key Consumer Protections:
Page 2 of 38 •
,CRM2601 | Exam Revision 2023–2025 Credit Management II
• Pre-agreement disclosure (s 92): Credit providers must give consumers a pre-agreement
statement and quotation before concluding a credit agreement.
• Cooling-off period (s 121): For certain agreements, consumers may cancel within five
business days without penalty.
• Right to documentation (s 92–93): Consumers are entitled to a copy of their credit
agreement in plain language.
• Prohibition of reckless credit (s 80–83): Credit providers must conduct affordability
assessments; granting credit without doing so constitutes reckless lending.
• Debt review (s 86): Over-indebted consumers may apply to a debt counsellor for re-
structuring of their obligations.
• Credit bureau regulation (s 70–72): Consumers have the right to access their credit
records once a year at no cost and to dispute inaccurate information.
Responsible Credit Granting:
Before granting credit, a credit provider must take reasonable steps to assess:
1. The consumer’s general financial means, prospects and obligations.
2. The consumer’s debt repayment history and credit profile.
3. Whether the consumer understands the risks, costs and obligations of the proposed agree-
ment (s 81).
[Tip] Exam Tip
Examiners reward answers that cite specific section numbers. Always mention s 3 (pur-
pose), s 80–83 (reckless credit), s 86 (debt review), and s 70–72 (credit bureaus). Using
these makes your answer stand out.
(b) [8 marks]
Question: Distinguish between the following categories of credit agreements in terms
of the NCA: (i) a credit facility, (ii) a credit transaction, and (iii) a credit guarantee.
Provide one practical example of each.
Answer:
The NCA classifies credit agreements into three main categories under Section 8:
Page 3 of 38 •
, CRM2601 | Exam Revision 2023–2025 Credit Management II
Definition Example
Category
A credit agreement where the consumer can Credit card; retail store
Credit Facility account; overdraft facility
receive money, goods or services up to an
approved limit and must repay amounts
used plus fees/interest. The limit can be
accessed repeatedly (revolving credit).
A once-off credit agreement where the Home loan; vehicle fi-
Credit Transac- nance (instalment sale);
consumer receives a fixed sum, goods or ser-
tion personal loan
vices and repays the total over a set period.
An agreement where a third party (guar- Surety agreement; bank
Credit Guarantee guarantee for a business
antor) undertakes to satisfy the obligations
of a consumer to a credit provider if the loan
consumer defaults.
[!] Watch Out
Do not confuse a credit facility with a credit transaction. The key difference is re-
volving access: a credit facility allows repeated drawdowns up to a limit, while a credit
transaction is a once-off disbursement.
(c) [7 marks]
Question: Explain the concept of “incidental credit agreement” as defined in the NCA.
When does an ordinary commercial transaction become an incidental credit agreement?
Discuss TWO consequences that follow once a transaction becomes an incidental credit
agreement.
Answer:
Definition (s 4(6) read with s 8(5)):
An incidental credit agreement arises when a transaction that was not originally a credit
agreement becomes one because payment is deferred beyond a certain period or a charge is
imposed for the delayed payment. In short, it is credit that arises “incidentally” from a sale of
goods or services.
Page 4 of 38 •
CRM2601: Credit Management II
OCT/NOV Examination 2026 Revision Guide
Covering Past Papers: OCT/NOV 2023, OCT/NOV 2024 & OCT/NOV 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[B] South African Credit Law & Management [B]
[B]Open Exam Revision Guide
CRM2601
Module Code:
Credit Management II
Module Name:
OCT/NOV 2026 (Covers 2023–2025)
Exam Period:
Finance, Risk & Banking
Department:
100 marks per paper
Total Marks:
Study the NCA thoroughly. Understand, don’t just memorise. Real exam questions
test application.
• Exam Revision Notes | CRM2601 | OCT/NOV 2026
,CRM2601 | Exam Revision 2023–2025 Credit Management II
OCT/NOV 2025 EXAMINATION PAPER
CRM2601 – Credit Management II | Total: 100 Marks
Question 1 [25 marks]
(a) [10 marks]
Question: Critically discuss the purpose and objectives of the National Credit Act 34 of
2005 (NCA), with reference to specific sections of the Act. In your answer, explain how
the NCA seeks to protect consumers and promote responsible credit granting.
Answer:
[Key] Key Concept
The National Credit Act 34 of 2005 (NCA) came into full effect on 1 June 2007.
It replaced the Usury Act 73 of 1968, the Credit Agreements Act 75 of 1980, and their
associated exemption notices. Its primary aim is to create a single, comprehensive legal
framework governing consumer credit in South Africa.
Purpose of the NCA (Section 3):
Section 3 of the NCA sets out the following purposes:
• Promote and advance the social and economic welfare of South Africans, espe-
cially low-income earners and historically disadvantaged persons.
• Promote a fair, transparent, competitive, sustainable, responsible, efficient,
effective, and accessible credit market.
• Promote responsible credit granting and use, and prevent reckless lending.
• Address and prevent over-indebtedness of consumers.
• Provide a consistent enforcement framework through the National Credit Regulator
(NCR) and National Consumer Tribunal (NCT).
Key Consumer Protections:
Page 2 of 38 •
,CRM2601 | Exam Revision 2023–2025 Credit Management II
• Pre-agreement disclosure (s 92): Credit providers must give consumers a pre-agreement
statement and quotation before concluding a credit agreement.
• Cooling-off period (s 121): For certain agreements, consumers may cancel within five
business days without penalty.
• Right to documentation (s 92–93): Consumers are entitled to a copy of their credit
agreement in plain language.
• Prohibition of reckless credit (s 80–83): Credit providers must conduct affordability
assessments; granting credit without doing so constitutes reckless lending.
• Debt review (s 86): Over-indebted consumers may apply to a debt counsellor for re-
structuring of their obligations.
• Credit bureau regulation (s 70–72): Consumers have the right to access their credit
records once a year at no cost and to dispute inaccurate information.
Responsible Credit Granting:
Before granting credit, a credit provider must take reasonable steps to assess:
1. The consumer’s general financial means, prospects and obligations.
2. The consumer’s debt repayment history and credit profile.
3. Whether the consumer understands the risks, costs and obligations of the proposed agree-
ment (s 81).
[Tip] Exam Tip
Examiners reward answers that cite specific section numbers. Always mention s 3 (pur-
pose), s 80–83 (reckless credit), s 86 (debt review), and s 70–72 (credit bureaus). Using
these makes your answer stand out.
(b) [8 marks]
Question: Distinguish between the following categories of credit agreements in terms
of the NCA: (i) a credit facility, (ii) a credit transaction, and (iii) a credit guarantee.
Provide one practical example of each.
Answer:
The NCA classifies credit agreements into three main categories under Section 8:
Page 3 of 38 •
, CRM2601 | Exam Revision 2023–2025 Credit Management II
Definition Example
Category
A credit agreement where the consumer can Credit card; retail store
Credit Facility account; overdraft facility
receive money, goods or services up to an
approved limit and must repay amounts
used plus fees/interest. The limit can be
accessed repeatedly (revolving credit).
A once-off credit agreement where the Home loan; vehicle fi-
Credit Transac- nance (instalment sale);
consumer receives a fixed sum, goods or ser-
tion personal loan
vices and repays the total over a set period.
An agreement where a third party (guar- Surety agreement; bank
Credit Guarantee guarantee for a business
antor) undertakes to satisfy the obligations
of a consumer to a credit provider if the loan
consumer defaults.
[!] Watch Out
Do not confuse a credit facility with a credit transaction. The key difference is re-
volving access: a credit facility allows repeated drawdowns up to a limit, while a credit
transaction is a once-off disbursement.
(c) [7 marks]
Question: Explain the concept of “incidental credit agreement” as defined in the NCA.
When does an ordinary commercial transaction become an incidental credit agreement?
Discuss TWO consequences that follow once a transaction becomes an incidental credit
agreement.
Answer:
Definition (s 4(6) read with s 8(5)):
An incidental credit agreement arises when a transaction that was not originally a credit
agreement becomes one because payment is deferred beyond a certain period or a charge is
imposed for the delayed payment. In short, it is credit that arises “incidentally” from a sale of
goods or services.
Page 4 of 38 •
