The short answer to this question is yes. If it is determined that your reckless lending case is solid, it will be referred to a magistrate’s court in order to determine if your loan can be written off. However, if you are a victim of reckless lending and you opt to have a registered debt counsellor represent you in court, you will not have to appear in front of a judge. Your representative will do that for you.
Keep in mind that credit providers rely on a section of the NCA to remove any liability from them if the customer deliberately misled them. Therefore, they do not feel the need to check the validity of the information that you provide. If you have signed an agreement stating that you have enough disposable income to repay your debt, creditors can use this as their defence against reckless lending. Therefore, it is up to the presiding magistrate court to decide if the debt should be written off or not.