How to claim Reckless Lending

Despite the practice being outlawed, reckless lending continues unabated – so much so that the National Consumer Tribunal (NCT) has received double the number of complaints. Here is how to claim reckless lending.

Do you feel you may be the victim of reckless lending? If yes, contact a registered debt counsellor who will be able to investigate the matter and advise you on the best steps to take.

If the counsellor thinks you have a case, it will be referred to a magistrate’s court to decide whether your loan can be written off.

Credit providers are relying on a section of the NCA which removes any liability from them if the consumer deliberately misled them. They do not have to check that the information you provided was true, and if you signed an agreement that you have enough disposable income to pay off the debt, they can basically wash their hands.

Credit providers use the fact that the client signed the application and affordability assessment as their defense against reckless lending, which would be left to the presiding magistrate to decide in each case. This is, in short, how to claim reckless lending.