Key issues: Variation of interest rates | Disclosure of interest rate changes | Application of the loan Terms and Conditions 

Summary of the complaint:

We found that the consumers’ claims had not been established. This is because the variable interest rate on the consumers’ loans was adequately disclosed in the loan agreements and the terms and conditions to the loans. Further, we consider that the FSP and the loan servicer was entitled to exercise its commercial judgment when changing the interest rates applicable to the consumers’ loans.

Summary of Determination:

I find that the consumers’ claims that the FSP increased the interest rate in an unlawful, improper and unconscionable basis have not been established. This Determination affirms the position set out in our Review dated 16 November 2016.

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