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Debt Review – How Do I Know Whether I Am The Victim Of Reckless Lending?

free-credit-report-189Debt-911 has expressed concern about reckless lending for some time. We have witnessed the destructive effects of reckless lending and have assisted many victims

to get their finances back on track through Debt Review.

The National Credit Act (NCA) of 2007 is very specific with regards to what constitutes reckless lending and makes the following distinctions:

A credit agreement can be considered reckless if at the time of the agreement:

  • It can be demonstrated that there was a failure to conduct a proper assessment into a consumer’s credit worthiness as required by section 81(2) of the act
  • If the credit provider conducted a credit assessment according to the act but decided to grant the consumer credit anyway.
  • If the consumer did not understand the consequences, costs or obligations of taking on the additional credit.
  • If, upon entering the agreement, the consumer became over indebted.

Reckless lending results from a situation where a client’s income is insufficient to enable him to meet his or her monthly repayment commitments.

Exclusions from Reckless Lending

Where a credit agreement exists that was entered into prior to the act coming into effect in 2007, this cannot be considered reckless lending, nor does any of the following:

  • Student or school loans
  • Emergency loans
  • Pawn transactions
  • Credit agreements where the borrower has provided false information.

Do you believe you may the victim of reckless lending?

If you feel that your financial hardships may have been provoked by a clear case of reckless lending, please feel free to contact Debt-911 who will investigate your personal financial situation and provide you with legal options to deal with your predicament.

Debt-911 will guide and assist clients through each step in the debt review process including representation in court if required.

If you find yourself thinking about how you are going to meet your monthly repayments, simply call us, SMS Help to 40935 or fill out the form alongside and one of our trained debt counsellors will call you to assess your personal situation and give you free advice.