Over IndebtednessWhat is over-indebtedness? Over indebtedness refers to a situation in which you are unable to pay off all of your financial obligations on time, as agreed under a credit agreement. This could be due to a change in your financial commitments or because you’ve borrowed and spent more money than you earn. Debt can become increasingly stressful over time if not addressed, as it causes a sense of social and financial exclusion, so it’s best to tackle over-indebtedness immediately by hiring one of our knowledgeable and experienced debt counsellors. Your over indebtedness may be due to reckless lending If you took your credit agreement out after 1 January 2007, your agreement might fit the criteria for reckless lending. This means your debt could be written off or you may even be entitled to a refund on interest and other payments that you made to the Credit Provider (CP). If you can relate to any one of the clauses below, we advise that you get in touch with us immediately, as the credit you are paying for may have been sold to you illegally. Even if you are not yet in a state of indebtedness, we may be able to get some or all of your money back.
- Did the CP conduct a thorough affordability assessment by requesting proof of salary, bank statements to verify your disposable income and confirmation of financial obligations like household/standard living expenses?
- Did the CP alter your financial information or disregard information you provided in order to approve you for credit?
- Were you given a copy of your credit agreement, comprehensive details of the loan, and informed of all costs and risks involved before signing?
- Were you put into a state of over-indebtedness, rendering you unable to maintain your contractual payments by taking out the credit?
- Did you fully understand the risks, costs and obligations involved in taking out the credit when you signed the agreement?
- Was the information provided in a language you understood?
- Were the incomes of family members or friends, who were in fact unable to help you with repayments, included as part of your total household income?