Reckless Lending
A credit arrangement would be deemed reckless under the National Credit Act (NCA) if the credit provider failed to conduct an affordability review, if it became clear that the client did not appreciate the risks of the credit, or if the debt put the client into an over-indebted state.
Have you been
a victim?
You could have been a victim of Reckless Lending if you took out a loan, a credit card, a bond, or vehicle finance after 2007 and have fallen behind or are still in arrears. Banks are required to conduct suitability or eligibility tests in order to determine the ability to make regular payments.
If your circumstances haven't improved and you've fallen behind on your payments, it's possible that the bank didn't do its job, which is a strong sign that the loan is risky and should be written off. In such cases, you may be entitled to have your debt written off if you were unavailable or unsuitable for the loan; alternatively, if too much time has elapsed and the outstanding balance has already been prescribed debt, you may be able to have your debt written off.