It has been argued that consumers are often responsible for their over-indebtedness by borrowing too much money or buying too much credit. This is usually the result of economic despair and a lack of understanding of the difficulties in repaying or serving their debts. However, credit providers are often responsible for giving too much credit lightly to consumers who cannot afford to pay off their debts. One of the main objectives of the law is to combat over-indebtedness and ruthless lending. Paragraphs 78 to 88 of the Act contain detailed, extensive and extremely important provisions in this regard. The effect of opening and service charges on small loans is related to a misappropriation of the cost of credit away with interest and fees, so that interest rates decrease relative to these fees. This imbalance has the dangerous effect of concealing the real cost of consumer credit and misleading the consumer. The drastic reduction in interest rates conceals or conceals the actual cost of credit when initiation and service fees are added. These fees may remain largely hidden, with an emphasis on interest rates (better known to consumers) when products are marketed. Fees help keep interest rates low, which makes credit cheaper, although credit is not cheaper. Abandoning the cost of credit away from interest and fees (which consumers do not know about) will increase the likelihood that consumers will be misled about the actual cost of credit.
Many are attracted to borrow money that will cost much more than they originally anticipated. It is important that paralegales understand the risk that this concealment of the actual cost of credit will occur in order to warn their customers of this danger. This is serious. Many of these provisions are intended to penalize credit providers. Credit providers will be very careful to reduce the risk of non-performing loans. These provisions should therefore reduce over-indebtedness and reckless lending, at least in the formal sector. However, a negative result for consumers may be that lender loans will be much more reluctant in the future and, as a result, fewer people will have access to credit.