Reckless Credit

When you open yourself up to receiving credit, it is essential to understand the difference between responsible lending and Reckless Credit. The National Credit Act 34 of 2005 states that a detailed financial assessment has to be conducted whenever a loan or credit card/store card is applied for. This gives a comprehensive overview of a consumer’s current financial capabilities and circumstances.

Any risks associated with lending must be fully understood by the consumer, or else it may be considered a reckless act. If a consumer presents with unstable financial findings during their affordability assessment, entering into a loan agreement can be considered Reckless Credit. It is up to the creditor to choose who qualifies and can meet the obligations for repayment, and if the choice is made without due consideration, the consequences that follow can be dire.

The affordability assessment you fill in or the credit check that is conducted may seem unnecessary, but these steps are in place for a reason. As consumers, the simple fact that a loan or credit card is optional can be very enticing, especially when times are tough. As creditors, a responsibility exists to refrain from any acts of Reckless Credit or misguided lending. The professionals are there to make sure your debt does not work against you, by lending money in a fair, balanced, and careful manner.

Is it Reckless Lending?

Being granted a loan without a proper and thorough financial assessment is a big red flag. If your monthly repayments and interest rates are incredibly steep, you may also be a victim of Reckless Credit, where your newly acquired loan is simply unaffordable. Misleading and unclear information from your creditors is often a sign of Reckless Credit since having a signed contract that makes no sense is not beneficial to all involved.

If your debt is getting the best of you, you might wonder if Reckless Credit played any part in it. While National Credit Regulator (NCR) registered lenders can be trusted, it is important to stay mindful of what a normal lending process should include. Make sure that your affordability is first assessed, your interest rates are reasonable, and that every aspect of your loan agreement is transparent and clear. If you have doubts along the way, you’re well within your rights to raise questions and seek answers.

Like any legal process, proving Reckless Credit involves gathering facts and information for your case. Our team will do a complete check of the creditor in question to assess for rash lending and represent your best interests in court. If your creditor is in the wrong, it is possible that you won’t need to pay them anymore, or could be allowed to pay a lot less.

At Credit Boost, we are here to help you write off the debts that almost became your undoing, at a reasonable and fully disclosed fee. Contact us today for professional services and the best results possible for your Reckless Credit.