Key issues: Investment loan | Responsible lending obligations | Breach of responsible lending | Unsuitable credit contract | Lender
Summary of Determination
The Determination affirms the position set out in our Review dated 7 June 2016 and specifically notes:
- A reconciliation of costs incurred by the consumers and the capital gain realised on sale of the property purchased with the proceeds of the loan shows that the consumers did not suffer a financial loss, and in fact have realised a net financial benefit. In those circumstances, I find that the FSP is not required to provide compensation to the consumers for its failure to comply with the National Credit Act.