Reckless credit
Credit that may have been granted without proper affordability checks or in circumstances restricted by the National Credit Act.
Definition
Reckless credit questions usually turn on the application documents, affordability assessment, income and expense records, credit checks, existing debts, explanations given to the consumer, and whether the consumer became over-indebted. It should be reviewed before assuming a loan is automatically unenforceable.
Key takeaways
Credit that may have been granted without proper affordability checks or in circumstances restricted by the National Credit Act.
Banking and Finance
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Related legal problems
This glossary provides general information only and does not constitute legal advice.
Common situations
Reckless credit dispute
Over-indebtedness
Debt review
Related resources
Resources and guides
Banking and Finance Document Pack
Banking and Finance Document Pack: prepare Credit agreement, Loan agreement, Security documents and identify missing records before legal advice.
Banking and FinanceChecklistCredit And Finance Checklist
Credit And Finance Checklist for preparing documents, facts, dates, and questions connected to banking and finance.
Banking and FinanceFAQs
Reckless credit FAQs
What does Reckless credit mean?
Credit that may have been granted without proper affordability checks or in circumstances restricted by the National Credit Act.
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