What is reckless lending and can it help me?

Reckless lending occurs when a credit provider grants credit without proper affordability assessments.

Under the National Credit Act, if a credit provider:

• Did not verify your income and expenses before granting credit

• Knew or should have known you couldn't afford the loan

• Failed to conduct proper credit checks

The credit agreement may be declared reckless and the court can:

• Set aside (cancel) the entire debt

• Suspend the agreement's effect

• Reduce the amount owed or reverse interest charged

If we identify potentially reckless lending during your assessment, we can investigate (R1,500 fee) and include this in your court application.