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Reckless Credit

The Benefit of a Reckless Credit Check

When DebtSafe finds that our client’s creditors are guilty of Reckless Lending when applying for Debt Review, that debt could be written off.

Which means you won’t have to repay the loan.

Putting a Stop to Even More
Over-Indebtedness

In the fight against over-indebtedness the National Credit Act (NCA) has deemed it the responsibility of the credit provider to ensure that when credit is given, it is done in a responsible manner to avoid over-indebtedness.

So, if a creditor provides credit to a consumer and the consumer can’t afford the repayments, it could be classified as Reckless Lending.

DebtSafe Doing Our Part to Help Consumers

Reckless Credit Investigations are now part of the Debt Review process and we do a full Reckless Credit Investigation for every consumer who applies for our Debt Review program.

What DebtSafe looks for in a Reckless Credit investigation:

Whether the credit provider failed to make a proper affordability assessment according to the NCA at the time of granting the credit,

Or, if the creditor has made the affordability assessment and entered into the agreement with our client despite the fact that (a) the client did not understand or appreciate the risks regarding the costs and obligations under the agreement, or (b) knew that the agreement would lead to our client’s over-indebtedness.

A Reckless Credit Investigation is just one of the many benefits DebtSafe provides for our clients.
When a Credit Agreement Is Deemed Reckless by the Court, the Court May:
  • Set aside part or all rights and obligation of you (the consumer) and credit provider, OR
  • Suspend the force and effect of the agreement.

Remember, only a Magistrate’s/High Court can find a credit agreement reckless.

Reckless Lending vs Reckless Borrowing
Reckless Lending

If a credit agreement or loan is found to be reckless by the Magistrate’s / High Court, the credit agreement or loan could be written of­f and the consumer does not have to repay the loan.

Reckless Borrowing

If the credit provider proves that the consumer was in any way dishonest or not completely truthful about his/her ‑financial position during the credit application process, the Court will not assist the consumer.

To find out more about the other benefits our Debt Review program offers you can request your free, no obligation, debt assessment today by filling in our call back form.
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“Being under debt review, especially with DebtSafe, is the best decision I've made. My life is less stressful. Thank you.”

Wendy S. – Port Elizabeth