better banking

Case - 45813

2016 - 2017


Property lending

Mr G was offered a $4,000 cash incentive when he took out a $550,000 home loan on a fixed rate for two years.  A condition of the offer was that he return the $4,000 if he repaid the loan in full within two years. Mr G accepted the offer. 

Six months later, Mr G sold his property and repaid the loan.  The bank wanted the $4,000 back, plus an early repayment fee of $7,000.  When Mr G complained about these charges, the bank said he was under contract to repay the charges.  If dissatisfied with this response, he could complain to us within two  months.  Mr G rang us and discussed how to make a complaint, but didn’t actually lodge a complaint. 

Mr G declined to pay the charges.  He also did not pay other debts owed to the bank.  After more communication with Mr G about the charges, the bank applied to the courts for a summary judgment against him.  A month before the court date, Mr G lodged a complaint with us.

Our rules do not allow us to consider a complaint about a matter that is subject to legal proceedings. Mr G had had an earlier opportunity to lodge a complaint with us, but did not do so. We told him we could not consider his complaint. 

He and the bank negotiated a settlement before the court date, and the matter was resolved.