28/05/2026
Can i prove if i was granted credit recklessly?
Yes. A reckless credit agreement can be proven with documents showing that, at the time the credit was granted, the lender did not take the required reasonable steps to assess affordability and understanding, or went ahead despite information showing the consumer would likely become over-indebted. The National Credit Act requires the provider to assess the consumer’s understanding, repayment history, and existing financial means/prospects/obligations before granting credit.
The strongest proof usually includes the credit application, pre-agreement quotation, affordability form, payslips, bank statements, credit bureau report, expense list, and any emails/SMS/WhatsApps showing the lender skipped checks, inflated income, ignored debts, or approved the loan too quickly. The regulations specifically require practicable steps to validate income using recent payslips or bank statements, and to take account of debts and necessary expenses.
A lender can defeat a reckless-credit claim if it proves the consumer did not fully and truthfully answer the questions in the affordability assessment and that this materially affected the assessment.
If a court finds reckless credit, it may set aside part or all of the consumer’s obligations, suspend the agreement, and in some cases restructure the debt.
A practical rule: if the lender cannot produce proper affordability records, and your own documents show you could not realistically afford the instalments, that is often the start of a strong reckless-credit case.
