Stock mortgage | Lender | Misrepresentation | Enforcement action | Inappropriate forum
The FSP had a stock mortgage over the consumers’ livestock under a finance facility provided by the FSP to the consumers.
The consumers were in default under the finance facility and the FSP wanted to take possession of the livestock. The consumers were also in default of a working farm lease with a third party, who had issued a notice to the consumers stating that it intended to impound the livestock and terminate the lease.
We considered it more appropriate that a forum, such a court, deal with the consumers’ claims given the competing interests in the livestock, including that of the third party. Therefore, the FSP was permitted to resume enforcement action.
The complaint was referred to the Ombudsman for Determination and the position set out in the Review was affirmed by the Ombudsman.