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
- 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:
- the loan was manifestly inappropriate for the consumers in view of their circumstances; and
- 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.
- 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