VIC Bank declined finance application due to previous complaint!

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

Mike Love

Well-Known Member
25 June 2014
61
3
199
So we used this major bank and they were dodgy so we made AFCA complaints about them, as they refused to rectify the issues.

You are probably thinking - why use them again - but there are not many options for property finance in a super fund.

So we applied for finance for another property with the same bank.

They gave us a "conditional approval" dependent on a number of conditions being met, mainly about providing extra documents etc.

THEN, two weeks after applying, they contact me when they realised that I had made previous complaints about their service. The assessor told me that it was a concern that I had made complaints etc. and that they would have to have a meeting to discuss..

The next day she rang and told me "the loan was declined due to a number of factors, my overall exposure and past complaints". The previous day her only concern was the complaints.

So my question is, can a bank refuse a loan based on that customer having made a complaint about their service, AFTER they already issued conditional approval?

NB. I asked for a copy of the call recording, and she refused to give me a copy.
 

Paul Cott

Well-Known Member
LawConnect (LawTap) Verified
26 May 2014
309
95
789
Ballarat, Victoria
So we used this major bank and they were dodgy so we made AFCA complaints about them, as they refused to rectify the issues.

You are probably thinking - why use them again - but there are not many options for property finance in a super fund.

So we applied for finance for another property with the same bank.

They gave us a "conditional approval" dependent on a number of conditions being met, mainly about providing extra documents etc.

THEN, two weeks after applying, they contact me when they realised that I had made previous complaints about their service. The assessor told me that it was a concern that I had made complaints etc. and that they would have to have a meeting to discuss..

The next day she rang and told me "the loan was declined due to a number of factors, my overall exposure and past complaints". The previous day her only concern was the complaints.

So my question is, can a bank refuse a loan based on that customer having made a complaint about their service, AFTER they already issued conditional approval?

NB. I asked for a copy of the call recording, and she refused to give me a copy.

Hi Mike,
That’s a tricky one as the bank will no doubt say they only declined for reasons other than your previous complaints so any claim of a legal nature will have that assertion by them. Maybe have that meeting with them. Or another AFCA complaint could be made. There must though be another bank that can help you out with the lend? Or another financier of some sort though you may have to pay a higher interest rate. Hope that helps.