Key issues: Credit | Unconscionable conduct | Unaffordable loan | Mortgage broker

Summary of Determination

1. I find that the FSP engaged in unconscionable conduct when it arranged loans for the consumers in October 2009.  In particular, I find that the FSP:

  • wilfully or recklessly withheld material information from a lender in order to create a false impression of the consumers’ financial circumstances and thereby influence the lender’s credit assessment, and
  • knew that the consumers could not afford the proposed loan repayments, or was recklessly indifferent as to whether or not they could do so.

2. To resolve the complaint, I order the FSP pay the consumers the sum of $102,905 as compensation for financial loss caused by the FSP’s conduct.  

Follow this link for a full copy in PDF >> Determination | 1 July 2015

This Determination relates to Recommendation | 9 April 2015.