Customer failed to supply information so bank could not assess repayment relief request

Categories:

Vulnerable customers and hardship decisions, Lending,

Summary:

In February 2025, Jayden had a joint home loan with his former partner. He contacted the bank because he was in financial difficulty and wanted help with repayments. The bank asked for financial information, along with both borrowers’ agreement, before assessing the request. Jayden complained that the bank failed to process his request. He said poor communication and a failure to consider his personal circumstances led to arrears, recovery action and adverse credit reporting.

Published:

November 2026

Our investigation

The bank asked for a completed statement of position, bank statements showing income and living expenses, and business financial records. Jayden said he posted the statement of position, but the bank had no record of receiving it. The statement of position was also only part of the information it needed. We found the bank did not receive the information required to complete an affordability assessment.

The bank sent emails about the arrears and tried to contact Jayden several times. It also told his former partner that both borrowers needed to complete and sign a hardship application before the bank could assess it. We found the bank explained what it needed and gave Jayden opportunities to provide the information.

The bank’s records showed the bank knew Jayden was in financial difficulty and had undergone changes in his personal circumstances. However, the records did not show the bank knew at the time that Jayden had mental health problems and was unable to communicate with the bank.

We found the bank acted fairly and communicated clearly. The bank was entitled to require supporting information before changing the lending arrangements. It could not assess Jayden’s request without the information it reasonably needed from him.