Mortgage | Investment property | Lender | Inappropriate finance
The FSP acted unlawfully by providing a loan to the consumer in circumstances where the FSP did not hold an Australian Credit Licence (ACL) which authorised it to engage in credit activity. We considered that the consumer’s liability to repay money to the FSP is limited to the principal amount advanced under the loan, less any payments made.
The FSP did not accept our Recommendation to allow the consumer to repay the balance owing on the loan after this adjustment, being the amount of $150,659.84. However, the parties then agreed that to resolve the complaint, the consumer would pay the amount of $150,000 to the FSP.
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Recommendation | 6 January 2017