Review | 29 November 2016

Key issues: 

Investment loan | Mortgage manager | Misleading conduct | Obligation to amend loan terms

Summary of the complaint:

  • The consumer is claiming that the FSP told him that the applicable fixed rate was 4.00% p.a

  • Approved the fixed rate of 4.00% p.a over the phone.

  • We found that we did not have sufficient information from either party to make a finding that the FSP provided the consumer with misleading info about the interest rate.

  • We found that regardless of the misrepresentation, the request to fix an interest rate would be subject to the FSP’s formal approval.

  • We found that the FSP did no more than exercise its commercial judgment when declining the consumer’s request to fix the interest rate. 

Download Review 29 November 2016

This Review was referred to the Ombudsman for a Determination.