Determination | 10 April 2018



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 Determination.