If you are under debt review, and a registered credit provider borrows you money, are there any repercussions for any of the parties?
Thank you for your question.
Once in debt review, you shouldn’t be able to qualify for credit. The National Credit Act prohibits you from incurring any further credit while you are under debt review. The reason for this is that whilst under debt review your budget is calculated and precisely allocated to your current debt obligations and other living expenses. If you manage to get credit while you are under debt review it will most definitely be interpreted as reckless credit.
The credit provider could forfeit the loan amount, but because you were aware of your debt review and still applied you could be required to repay the loan, which will be forfeited to the State. You’ll be putting your whole debt review at risk and all the protection it offers.
If you default on your debt review, credit providers are allowed to terminate the debt review and litigate without further notice. You could end up losing your house or vehicle if those were included in the debt review.
Hope this information helps.