Reckless Credit: Assess the Facts Before Making a Claim
Concerned that credit was granted without a proper affordability check? The NCA looks at the assessment and information at the time credit was granted, not simply today’s arrears.
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ASSEMBLE THE ORIGINAL INFORMATION
What ConsumerLaws can assess
Review the original application, income proof, bank records and obligations from when the loan was granted.
- Agreement
- Application information
- Affordability documents
- Income / expense evidence
- Financial position when the credit was granted
THE RELEVANT TIME
What the key question is
Sections 80–81 focus on the lender’s assessment at approval, not simply later arrears.
EVIDENCE · COMPETENT FORUM · REPRESENTATION
Potential remedies are not automatic
Legal findings and remedies depend on evidence and a competent forum. Debt is not automatically written off.
Important note on court matters
Court matters: Nothing on this page guarantees an outcome. We can refer court representation to an independent affiliate attorney, who acts only on your instruction and after accepting the case.
CLARITY ABOUT THE ASSESSMENT
Common questions about this NCA issue
Does being over-indebted now prove reckless lending?
No. Current difficulty can arise after credit was granted. The relevant inquiry considers the statutory assessment and circumstances when the agreement was entered into.
Can ConsumerLaws declare a credit agreement reckless?
No. ConsumerLaws can assess and organise the information. A binding legal determination belongs to the competent court or tribunal process where applicable.
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