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

  1. I find that 
    1. 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;
    2. the FSP has failed to verify the amount of credit it actually provided the consumer under the credit contract; and
    3. 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.
  2. To resolve this complaint, I order the FSP to:
    1. 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
    2. not apply any interest or other fees and charges on this amount.

Follow this link for a full copy in PDF >> Determination