Responsible lending is a key principle in the finance world to ensure that borrowers can access credit without facing financial ruin. Unfortunately, irresponsible lending practices have affected the lending landscape in the UK. 

This includes providing loans or credit to individuals who may not be in a stable financial position to repay them.  

Irresponsible lending can take various forms, such as:

1. Overlending: Approving loan amounts that exceed a borrower’s ability to repay, leading to excessive debt burdens.

2. Lack of Affordability Checks: Failing to conduct thorough affordability checks to determine whether borrowers can meet repayment obligations.

3. Predatory Lending: Targeting vulnerable individuals with high-interest loans, often trapping them in cycles of debt.

These practices can have severe consequences for borrowers, including:

1. Debt Spirals: Accumulating unsustainable debt, leading to a cycle of borrowing to cover existing repayments.

2. Financial Stress: High-interest loans causing financial stress and negatively impacting mental and emotional well-being.

3. Asset Loss: Risk of losing valuable assets, such as homes or vehicles, in cases of secured lending if unable to repay.

4. Damaged Credit: Defaulting on loans can result in poor credit scores, making it difficult to access financial services in the future.