Determination - 5 December 2014 (2)

Key issues: Credit Mortgage broker | Unconscionable conduct | Loan manifestly inappropriate for consumers | Reckless indifference to risk to consumers of default and loss of home  

Summary of Determination

  1. I find that the FSP engaged in unconscionable conduct by arranging a loan for the consumers in circumstances where the FSP knew, or was recklessly indifferent to the fact, that:

    1. the loan was manifestly inappropriate for the consumers in view of their circumstances; and
    2. if the consumers were not able to refinance the loan by the end of its term, they would default and likely have to sell their home to repay the loan.
  2. To resolve this complaint, I order the FSP to pay the consumers the sum of $42,814.31, being compensation for financial and non-financial loss caused by the FSP’s conduct, plus interest.

Follow this link for a full copy in PDF >> Determination | 5 December 2014