20 Aug How to Challenge Reckless Lending in South Africa

Living with overwhelming debts is like having a black and white filter over your life. Nothing feels as it should, and you cannot escape the pressure. One big cause of over-indebtedness is reckless lending. There are ways to check if you were granted credit recklessly, and our expert team knows how to challenge reckless lending in South Africa, as part of the credit clearance process.

As defined by the National Credit Act (NCA), reckless lending happens when a credit provider grants you a loan or approves your application for a credit card or store card without properly assessing your affordability.  Your credit report should represent your creditworthiness to creditors. If it reflects a low number (a score under 530), it is unlikely you will be approved for credit. If you combine a bad credit score with defaults and judgments, creditors should not consider your applications at all.

Understanding Reckless Lending

If you received a loan or were approved for financing without undergoing a credit check, there is a chance this credit can be written off. If this is the outcome, you won’t have to pay anything towards that credit agreement anymore. If you are under debt review, you are not legally allowed to access any credit, so if this happens it is another red flag of reckless lending. Protect your financial future with help from Cape Town Legal Consultants. We know how to challenge reckless lending in South Africa, with your best interests in mind. If you need help with judgment removals, we can assist you with this, too.

When reckless lending is suspected, it is best to consult with legal professionals as soon as possible. You don’t have to suffer financially because of something that is not your fault. Our team will thoroughly investigate your credit agreements with lenders and will provide you with a written and detailed report of the outcome. Here are some key points that signal reckless lending:

• No affordability assessment was done before you were granted credit
• Your affordability assessment results were ignored
• You did not have enough finances/income to afford the loan/credit
• There was no explanation of the costs and risks involved
• The loan or credit caused you to become over-indebted

Legal Counsel for your Financial Rights

Does this sound relatable? Gather as much supporting documentation as you can to prove your case. Then, contact us and take the first steps to clear your name from ITC records. We will be able to confirm your suspicions are valid and, if so, lodge a complaint with the National Credit Regulator (NCR) on your behalf. This could result in the debt being declared void, restructured, or even cancelled entirely.

As a consumer in South Africa, you should be able to depend on lenders to provide financial relief. Reckless lending does more than harm your bank account – it can affect your credit score and cause stress in your daily life. Make sure you’re on track to developing a healthy relationship with money and debt-free status. CONTACT US now to get started!