The Australian’s Anthony Klan has today reported:
One of the nation’s biggest low-doc issuers, the Bendigo and Adelaide Bank, has told borrowers they are not entitled to copies of their signed loan application forms, while other major lenders have told borrowers such documents have been “destroyed”, are “not relevant” or are “internal”.
This news comes after Consumer Advocate, Denise Brailey told a Senate inquiry on Wednesday that in the past 6 weeks she has seen 400 low-doc or no-doc loans and each one had been tampered with.
Normally, the borrowers’ income is overstated or employment status is falsified, leading many lenders to only hand over selected pages and omitting the pages containing the borrowers’ income.
There has been numerous loans extinguished by the Supreme Court where the borrower has been proven to be a victim of predatory lending. The High Court has upheld these decisions when one of the lenders appealed, potentially opening the floodgates for other borrowers’ to claim compensation.
» Lenders block borrowers’ details – The Australian, 10th August 2012.
Posted in Australian Housing | 9 Comments »