Free legal advice centre demands tough laws to tackle reckless lending

RECKLESS lending which has left thousands in debt and seriously damaged the economy should be curbed through tough new consumer codes and laws, a new report has recommended.

In a comprehensive study on over-indebtedness, FLAC (Free Legal Advice Centres), urges the Government to consider introducing new laws to tackle irresponsible lending head-on.

In its report, To No One’s Credit, launched yesterday, FLAC outlines how the South African government created an agency to implement new consumer laws to get tough on lenders. Under the legislation, a court may declare a credit agreement to be reckless if the credit provider failed to assess the borrower and the risks involved with the loan.