The danger of assumption
A lender relied on old information when determining loan affordability. New circumstances meant Ruby could not afford the new loan.
Topic: Finance and loans
Assessment failure meant loan repayments were unaffordable
Jung-min couldn’t keep up with the repayments on his car loan. The lender suggested this was because his circumstances had changed after he took out the loan. We found the lender had failed to make reasonable inquiries about Jung-min’s wages and how many people he was supporting with his income when approving the loan.
That’s not my money to spend
A lender lent to Maurice based on the money she was receiving into her account. However, much of this income wasn’t hers to begin with and shouldn’t have been included in the assessment.
Debt forgiven on compassionate grounds
Huan, a domestic abuse survivor, could not afford to repay a loan that her partner had forced her to borrow
Loan term confusion
Richard was confused about why he still owed money on his loan. He thought the loan term had already ended, but the loan had been extended because of payment holidays.
Lender made reasonable inquiries before approving a loan
Chen told the lender she received money from boarders. Was the lender able to rely on this income when deciding whether to approve the loan?
Lender not obliged to consider hardship request
Niko wanted the lender to give his company further hardship assistance. Did the lender have to consider Niko’s request?
Error when a loan was documented
Lender overlooked to apply an agreed discount when they redocumented a loan. This affected the amount of interest the borrower would pay.
Mortgagee sale last resort
When Christina’s circumstances changed, making repaying a loan impossible, the finance company was given no option but to apply to the court for substituted service to allow them to sell the property
Circumstances change, but no evidence of financial hardship
Max, Marie, and Colin agreed to repay a loan at $4,000 a month, but had difficulty meeting this payment and wanted the lender to permanently reduce their payments to $2,000 a month where there was no evidence of financial hardship
