R
Legal
Reckless Lending
When a credit provider grants a loan without conducting a proper affordability assessment, or when the consumer did not understand the terms. Under the NCA, a court can set aside a recklessly granted credit agreement.
Usage Examples
"The debt counsellor argued that the loan was reckless lending because no affordability check was performed."
"If a court finds reckless lending, the credit agreement can be suspended or set aside entirely."