Reckless Lending – What Does It Mean to You?

Reckless Lending – what is it? 

Do you find yourself giving in to credit providers, who are always emailing, phoning and advertising their services all over the web? Sometimes credit providers are more interested in gaining new clients, than they are in providing you with services that actually suit your financial circumstances, which can result in reckless lending.

Nowadays, getting access to credit is effortless and encouraged on a continual basis via advertising. People in financial crises don’t need much convincing when loans and credit are offered to them all the time online, over the phone etc. Acting out of desperation, individuals often take out credit without realising they’re not equipped to pay it back. Furthermore, these kind of loans often have a lengthy repayment term and high interest rates – a deadly combination for the already indebted!

The National Credit Act requires that credit providers thoroughly assess your credit-worthiness before granting you a loan.  So, if you suspect that your credit provider did not conduct a proper affordability assessment, you should immediately contact NDA to look into this matter for you.

How does NDA help victims of reckless lending?

NDA operates in collaboration with the Consumer Justice Group (CJG), who are a team of expert financial claims attorneys that have extensive experience in winning cases against reckless lending and other financial injustices. CJG will check all of your accounts and financial agreements to see if your creditor has granted you credit illegally and take the necessary legal steps on your behalf.

CJG’s expert financial claims attorneys will then make an application to the Court for the credit agreement to be declared as reckless and for your financial obligations under the contract to be set aside, or for the contract to be suspended.

Simply put, this means you won’t have to pay the loan back!

Questions to ask yourself, to find out if you’re a victim of reckless lending…

  • Did you understand and appreciate
    • The costs and risks,
    • your rights under the National Credit Act, and
    • your obligations under the credit agreement, before entering into the contract? NO 
  • Did your credit providers perform an affordability assessment to see whether or not you could afford to pay back the loan you applied for? NO
  • Did entering into the contract cause you to become over-indebted? YES
  • If you had a commercial purpose for the loan, did the credit provider reasonably consider whether or not this venture would be successful? NO
  • Did your credit provider obtain a copy of your credit report? NO
  • Was the credit sold to you in a suspicious, indirect way, i.e. over the phone or online? YES
  • Were you under debt review or administration when you were approved for the loan? YES

If your answers matched those in bold above, it’s likely you’ve been the victim of reckless lending and should contact NDA at once, so we can arrange to have your debts reduced or even completely written off!