Where to report reckless lending

Over indebted consumers may have their credit agreements set aside, if you have been granted credit recklessly, which means that all obligations under the agreement will be set aside. Reckless lending cases however, are rare and you have the responsibility to truthfully disclose your finances when applying for credit. Here are some tips on where to report reckless lending.

To prove reckless lending, 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 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.

What should you do if you suspect reckless credit?

Approach a debt counsellor who would be able to determine whether there was reckless lending in respect of any of your credit agreements, the counsellor will refer the matter to court to have your agreement set aside.

If you misrepresented facts about your finances, at the time of entering into the agreement, your matter will not be regarded as reckless lending.