How to Prove Reckless Lending

You know that little voice that keeps telling you that your massive debt problem is not your fault? If it’s not the same voice that continually edging you to splurge on shiny accessories, it may have a point. Actually, if you can prove that companies gave you credit without making sure could afford it, you may even be able to have your debt written off.

To prove that your credit providers lent you money recklessly, you must show that:

• You were not able to afford the loan when you entered into the credit agreement; or
• You did not understand the terms and conditions of the credit agreement.

However, be very wary of the latter as credit providers normally escape liability by making you sign below the fine print acknowledging that you understand the terms and conditions.

Therefore, over indebted consumers may have their credit agreements set aside, if they have been granted credit recklessly. This means that all obligations under the agreement will be set aside.
What should you do if you suspect reckless credit?

If you suspect that you are a victim of reckless lending, you should approach a debt counsellor who would be able to determine whether there was reckless lending in respect of any of your credit agreements. The debt counsellor will refer the matter to court to have your agreement set aside.