Check for Reckless Lending

The reckless lending check is performed during the assessment, not after. For each existing credit agreement, the counsellor must form a view on whether the original grant was reckless and flag it for further investigation if so.

Counsellors who skip this step leave money on the table. A reckless finding can suspend the obligation entirely, which materially changes the consumer's affordable amount and the success of the proposal.

Credit providers respond to reckless allegations by producing the original loan file. Our practice is to request that file in writing within fourteen days of identifying a possible reckless agreement, so the timeline is on record if the matter goes to court.

Procedural authority: NCR Circular 005 of 2025 sets the investigation steps and documentary requirements for a reckless lending finding under NCA s 80 and s 83.