RECKLESS CREDIT: failure by a credit provider to conduct an affordability assessment of the consumer; the consumer did not understand or appreciate the costs, risks, and obligations of the credit agreement when entering into it; or, entering into an agreement made the consumer over-indebted. Reckless credit may result in the suspension of a credit agreement.

Debt Counselling

Debt counselling is the procedure in which an over-indebted consumer applies to court to have his/her debt re-arranged, for example, by reducing the monthly instalment amount and extending the period over which the outstanding balance is paid back to the credit provider.