Determination

Key issues: Cross collateralised mortgages | Lender | Complaint issue/s – application of sale proceeds to arrears | Time to refinance | Release of sale proceeds to repay GST liabilities | Family Court Orders







Summary:

The consumer was a Company that entered into credit facilities with the FSP, cross collateralised by registered mortgages on a number of properties.

The consumer claimed that:


  • the FSP should have applied sale proceeds for the sale of the properties to reduce the arrears and not the principal loan,
  • the FSP should release funds arising from the sale to the consumer so he could repay the Company’s GST liabilities arising from the sale, and
  • the consumer wanted more time to refinance.

We found that this complaint was not made out. 

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This Decision was referred to the Ombudsman for a Determination