Key issues: Delay in settlement | Recovery of repayments | Inaccurate information | Mortgage | Loan servicer

Summary of the outcome:

We found that the consumers’ claims had not been established. This is because the FSP did not delay the discharge of the consumer’s loan or the refinance.  Furthermore, the FSP did not attempt to recover the repayment of the consumers’ loan  in an inappropriate manner as it provided notice and informed the consumer that it would lodge a caveat if the amount as not repaid.

Summary of Determination

The Determination affirms the position set out in our Review dated 28 April 2016 and specifically notes:

1. The FSP:

  • did not unreasonably delay the partial discharge of the loan in early 2015,
  • may have delayed the refinance of the loan in late 2015, however only by a matter of days,
  • did not attempt to recover the outstanding amount in an inappropriate manner, or in such a way as to cause the consumers any financial loss, and
  • did provide the consumers with inaccurate information, most relevantly in the context of the refinance and provision of the final payout figure.

2. The FSP has also:

  • adequately compensated the consumers for any loss arising from any incorrect information provided to them, and
  • effectively compensated the consumers for any possible loss arising from the minor delay in settlement of the refinance in late 2015.


Follow this link for a full copy in PDF >> Determination | 22 July 2016