Determination

Key issues: Car loan | Inappropriate loan | Due care and skill | Undue harassment | Lender





Summary

We found that:

  • the car loan provided by the FSP to the consumer was not regulated the by National Consumer Credit Code as the loan was for business purposes, however, 


  • the FSP did provide an inappropriate loan, as the consumer did not have the capacity to service the loan, 


  • there was no information to indicate that the FSP harassed the consumer in its collection conduct.

Taking into account the total repayments by the consumer and the benefit received by the consumer for the period of possession of the car, we recommended that the FSP waive the total outstanding loan balance and refund the amount of $209.90 to the consumer.

The FSP did not accept the Recommendation and the complaint was referred to the Ombudsman for Determination.  The Recommendation was affirmed by the Ombudsman and the Determination was accepted by the FSP.  



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