Reckless Credit Workshop – Review
Money Clinic Reckless Credit Workshop
This month the Money Clinic (a Cape Town Based Debt Counselling and financial well being Firm) hosted a workshop on Reckless Credit. The workshop was held at the Saartjie Baartman Centre for Women & Children on Klipfontein rd.
Reckless Credit
The concept of Reckless Credit was introduced with the National Credit Act back in 2007. The workshop covered the various forms of Reckless Credit. For example. If no pre agreement (quotation) is given to a consumer before they then go on to sign a contract fro credit: That agreement is called Reckless Credit. If a creditor does not conduct an assessment of whether a consumer can afford the credit they are offering : that is Reckless Credit. If a credit provider does conduct an evaluation of the consumers financial position and their ability to repay but ignore results that show the consumer cannot afford to repay the credit and still cover their monthly costs: that is Reckless Credit. Some creditors are mistaken in thinking that just because a consumer does not disclose fully all their monthly expenses that the creditor can later claim that this is the reason they granted credit recklessly. The workshop showed how creditors bear a heavy responsibility above just taking the consumers word for things. This is backed up by requirements of the National Credit Act. If a consumer is given documents to sign in a language they do not understand then this is also Reckless Credit.
Reckless Credit & Debt Review
When a consumer enters Debt Review they have a right to ask the Debt Counsellor to investigate to see if any of the credit they were granted is reckless. This requires that creditors provide documents showing how they quoted and evaluated the consumers credit worthiness and whether they could afford credit (at the time of the consumer applying for credit). Part of the workshop centred around how Debt Counsellors can ask the Courts to compel creditors to provide these documents if they are taking longer than the allowed time frames.
The Workshop also used real life examples of Reckless Credit matters that have been to court and ways of clearly identifying it (and making it very clear) in court documents were demonstrated.
The workshop was attended by Debt Counsellors, Attorneys, Credit Providers and Debtfree.
The Money Clinic
Visit their website here: http://www.moneyclinic.co.za/
Lecturer for the day Alan Manshon (left) who was interviewed by Debtfree DIGI for the November 2013 issue. You can read the interview on page 25 here: https://debtfreedigi.co.za/