QLD Can I Sue the Bank Through QCAT?

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Tik

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17 June 2017
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We have applied for a Construction home loan with Clickloans. We were informed that the bank approved for a Conditional. But after that the bank informed us that an Unconditional approval had been declined.

It was so unreasonable for the reasons given, as all of them should be already verified before a Conditional was approved.

We even complained to FOS that we were treated unfairly by the Variations since 2016. FOS determined the bank to pay us for $500. But we didn’t agree to the determination. As we didn’t want them to deduce about $70k from $130k which was left after selling a house. (We had 2 home loans with them during that time.)

After the determination, a proposal for an investment home loan which be prepared for about 2 months could not be submitted since then.

We have fully evidenced that we were treated unfairly on personal purpose by the Variations which is not according to Macquarie’s policies.

Would it be possible we to complain about this case to QCAT?
 

Rob Legat - SBPL

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What was the relevant condition(s) and the reason(s) given?
 

Tik

Active Member
17 June 2017
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Hi Rob, the reasons given that Unconditional approval was declined as follows.

1. Confirmation of recent credit enquiries.
2. Satisfactory exit strategy for the applicants
3. Acceptable valuation of the security property (if not already provided upfront)
4. Verification of the information provided in the Application Record
5. Rental Statements and rental appraisal for the granny flat confirming total income of $540 weekly.
6. Confirmation that the salary sacrifice deduction on payslips are voluntary.

All of them had been explained since preparing the proposal.
 

Rob Legat - SBPL

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Without knowing what information was relevant to these, accepting that every lender's appetite for risk is different, and spoken from the viewpoint of having operated a licensed credit provider:

1. This can be a killer if the lender's criteria is risk-averse. Excessive credit enquiries can be as bad as a default listing.

2. This is important depending on the type of facility. Especially if you are looking at an interest only facility. Further, lenders are required to consider the ability to repay for the life of the loan. If the applicant's age compared with the facility term exceeds anticipated retirement age, exit strategy becomes important.

3. Valuation is a standard condition of finance, and still very much a subjective thing. Coupled with number 5, this could be a concern.

4. Standard. Bearing in mind that any information which does not verify as correct is potentially going to cause massive issues.

5. This is a potential big issue if that rental income is underpinning the affordability of the loan.

6. Minor at best.

Be aware that explaining the situation is only the first part of the process. You need to get past the lender's risk policies. Items 1, 3, 4, and 5 are unlikely to be verified quickly at the front end. Item 2 would almost definitely have gone somewhere up the chain for contemplation. Item 3 is standard, and almost universally goes to a different section for actioning.

Also entirely possible that the application needs a two (or more) person sign off, regardless of the amount of the loan.

All of which is completely hypothetical - and you're almost completely unlikely to find out the particulars of. I would strongly suspect the lender's decision comes down to a commercial risk one, and I don't think you're be successful in trying to take action against it. Lenders have a lot of regulation to trip them up, but declining finance approval on the basis of (what they consider to be) unacceptable risk is still sacred.
 

Tik

Active Member
17 June 2017
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31
Thanks for the detailed explanation. As it took about 6 weeks for Clickloans to prepare a proposal. And all documents and explanations were supplied before a Conditional be approved. So, about their given reasons to decline, it seems unreasonable.

The point is, since we had a dispute with someone in a Variations section. Our proposal for a home loan, which was prepared for 2 months could not be submitted since 2016. And I have pieces of evidence that it is a personal propose to harass us. My question is if he/ she can do whatever they want?

I believe that many people have been unfairly treated without any response. I just want to do something. So, I would like to know if this case can be complained to QCAT?
 

Rob Legat - SBPL

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I’m not a litigator, but I don’t see a cause of action that you could use to take the matter to a court or tribunal. Possibly something negligence related in respect to the delay angle, but if it just comes down to a commercial decision then possibly not.

Either way, QCAT’s jurisdiction doesn’t stem that far. Its jurisdiction stems from minor debt issues and whatever powers it is given by statute. It isn’t designed for substantive actions based on common law principles.
 

Rob Legat - SBPL

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Only if it's unlawful discrimination due to a particular attribute such as race, age, gender, religion, etc. Even then, there may be a reasonable excuse in some circumstances.

Discrimination applications go through the Anti-Discrimination Commission Queensland.
 

Rob Legat - SBPL

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Possibly, but you'd best seek advice from a lawyer who specialises in banking and finance litigation. Either way, this isn't going to be the sort of thing you take to QCAT. And it's unlikely to be cheap or short. Ultimately, it may not be worth the trouble.