R
Legal
Reckless Lending
When a lender gives you credit without checking if you can actually afford it — or when you didn't understand what you were signing up for. The NCA takes this seriously; a court can tear up the whole agreement if it was reckless. Mashonisas and fly-by-night outfits do this all the time.
Usage Examples
"Thandi went to a mashonisa who gave her R5,000 without asking about her income or other debts. Her debt counsellor argued reckless lending and took it to court. The judge agreed — the loan got cancelled."
"Mpho signed a store card agreement at Edgars without anyone explaining the 28% interest rate. He was told it was just like a normal card. That's reckless lending — the store didn't make sure he understood."
"Lerato got a personal loan from a dodgy lender who never did an affordability assessment. When he defaulted, his lawyer fought the debt in court citing reckless lending under the NCA. He won."