Determination - 10 June 2014
Key issue: Whether the credit contract correctly discloses the amount of credit being provided, and whether the consumer actually received the full amount of the credit.
Summary of Determination
I find that
the FSP’s credit contract contravenes a key requirement of the National Credit Code (NCC), being the requirement to correctly disclose the amount of credit being provided under the contract;
the FSP has failed to verify the amount of credit it actually provided the consumer under the credit contract; and
on the balance of probabilities, I accept the consumer’s version of events that she obtained a cash advance of $2,000 as a consequence of entering into the credit contract with the FSP, instead of the $2,860 sum asserted by the FSP.
To resolve this complaint, I order the FSP to:
- reduce and limit the consumer’s liability under the credit contract to an amount equal to the difference between the cash advanced to the consumer ($2,000) and what the consumer has repaid ($1,355), being $645; and
not apply any interest or other fees and charges on this amount.
Follow this link for a full copy in PDF >> Determination