Do You Have a Case?
- Only credit agreements entered into after May 31 2007 can qualify for reckless lending.
- The time that the credit agreement was entered into is crucial – you have to show that at that time you couldn’t afford the credit. If your financial situation changed for the worse after the agreement, it won’t be taken into account.
- The courts will not provide relief where the consumer is currently in a position to manage repayments.
- The reckless credit rule does not apply to credit agreements in a company name, nor do they apply to school or student loans, pawn transactions and incidental credit agreements.
- Probably the most important issue in reckless lending cases is whether you were truthful in your application.
How to take it further
If you feel you have a reckless lending case, contact a registered debt counsellor who will be able to investigate the matter and advise you on the best steps to take.
If the counsellor thinks you have a case, it will be referred to a magistrate’s court to decide whether your loan can be written off.
Request a callback!
Get in Touch
- 082 587 2163
- Offices: Cape Town / Durbanville / Malmesbury / Somerset West