As a creditor/ lender we are required to comply with lender responsibilities in the Act. These includes that we as a creditor/lender must make reasonable inquires before entering a consumer credit contract. Thus, under the agreement we will meet the borrower’s requirements and objectives. Hence, ensuring that the payment amount under the agreement won’t cause any substantial hardship to the borrower.
We comply with the regulations that have been set out in the Act by carrying out reasonable inquiries and considering all aspects regarding the suitability of consumer credit contract. These aspects include:
- The amount of credit borrower is seeking:
- The borrower’s purpose for the credit;
- The terms of the credit the borrower wants;
- If lump sum payments are required, whether the borrower prefers them to regular payments;
- If the credit is for refinancing, whether the borrower accepts any additional fees they may incur
After making all these inquires, as a creditor/lender we are then required by the Act to ensure that we meet the borrower’s requirements and objectives.
