We have taken credit providers for reckless lending, and as a result of our investigations, one of our clients has had almost R300 000.00 in loans written off!
Meet Mr. Smith, a single father of 2, who is three years away from retirement from the public sector. Although Mr. Smith earns a decent salary, he is the sole breadwinner in the family. As the provider, he supports his elderly, sick parents, 2 children and this financial burden placed a lot of stress on him.
As the man of the house, he is responsible for taking care of his loved ones. The costs of medication and doctor’s visits incurred by his elderly parents kept rising each month. The school fees for each of his children rose every few months, not to mention the cost of contributions for the school books, daily lunches and uniforms.
Unable to keep up with their ever increasing needs, he started taking out loans to help him manage and these loans helped to sustain the family until each month-end. However, within a few months of taking out loans he noticed he couldn’t afford the payments and compounding interest on all his debts. He found himself making drastic decisions, like avoiding paying his children’s school fees, falling behind on rent, and subjecting his family to sitting hungry and in the dark.
After assessing Mr. Smith’s circumstances, NDA identified explicit signs of reckless lending. We found Mr. X had taken out several loans over a short period of time and could not afford to pay the loans. Once NDA presented the facts to the credit providers in question, they agreed to write off the loans equaling to R299 332.98.
This victory for our client is in a way a victory for many over-indebted South Africans who, if the loans are successfully written off, will no longer have to bear the burden of paying for a loan they cannot afford.
The National Credit Act was created to ensure that credit providers take the necessary measures to lend responsibly and ensure all due diligence is met before considering to give credit to consumers. Failure to do completely violates the rules set out in the act and can render the credit agreement unenforceable. Here at National Debt Advisors we actively pursue the banks with cases of reckless lending in the fight for consumer justice.
Do you find yourself struggling to meet all your minimum credit commitments on a monthly basis? Do you struggle to make ends meet and find yourself needing to take out loans to make it through the month? If you do, you might need debt relief or you might be a victim of reckless lending.
We encourage consumers who feel they are over-indebted and have been given a reckless loan by any credit provider, to come forward and get the help they need.