Legal Glossary
Reckless credit
Definition
The granting of credit where a credit provider fails to comply with legal requirements relating to affordability assessments or responsible lending.
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.