Recommendation | 15 November 2016 (b)
Failure to arrange loans in accordance to theconsumer’s requirements and objectives
- Investment property
- Cross-collateralised securities
- Lease provider
The consumers’ complaint concerned two cross-collateralised loans that the financial services provider (FSP) arranged for the consumers. We found that the FSP failed to arrange one of the loans in accordance with the consumers’ requirements and objectives. To remedy this, the consumers were required to refinance both loans given that the securities were cross-collateralised. We recommended that the FSP should reimburse the consumers for all reasonable costs that they incur to refinance the loans and pass on to the consumers any profit (including commissions) that the FSP had received from the lender in relation to both loans.
Follow this link for a full copy in PDF ► Recommendation | 15 November 2016