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
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.
>> Download Review in PDF
This Decision was referred to the Ombudsman for a Determination.