VIC Unsuitable loan NCCP

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ganrad

Member
10 June 2020
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If i have been given a loan that has been later found to be "unsuitable", then is the loan payable?
If not payable, then please advise the relevant section of NCCP.
 
Depends. Financial institutions are not usually concerned with what you want to spend your money on. If you have used the money for any purpose, then the loan is payable. If you have not used the money, then just hand it back to the financial institution or lender and close your account (if necessary). In short, you won't be able to keep money that you have borrowed from someone unless the loan has been forgiven. Have a close look at your loan agreement.
 

ganrad

Member
10 June 2020
4
0
1
Thanks for the response Suzi.
I am still perplexed though. If loan is deemed unsuitable then it should not have been given in the first place. Therefore, to my mind, the credit provider has to bear the loan loss plus any damages we have incurred.
Would appreciate clarification with some legal section or case.
 

Tim W

Lawyer
LawTap Verified
28 April 2014
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Sydney
If loan is deemed unsuitable then it should not have been given in the first place.
But you were.
Making a loan, or not making one, and working out how much to charge you for it, is a free commercial choice by the lender.
They didn't have to make the loan to you, or make it to you on the terms they did, but they chose to.
Just as you didn't have to borrow it, from them, from anyone, or on the terms you did, but you chose to.
Therefore, to my mind, the credit provider has to bear the loan loss plus any damages we have incurred.
Your mind is, quite simply, wrong.
In short and simple (and as @Suzi said above) - no, there's no way that you get to keep the money, or escape the debt (other than have it forgiven by the lender).
Would appreciate clarification with some legal section or case.
Mate, if our word is not enough for you,
then I suggest that you engage a lawyer of your own...
who will charge you a thousand dollars to repeat to you what we've just told you for free.
 
I find it interesting that you are asking for us to provide you with case law and sections of the Act. I notice that you have put up other posts (Debt & Bankruptcy forum) asking for case law in support of our answers. If you are a student, you ought to be using the Student section of this forum. If you are genuine, then you ought to seek the assistance of a solicitor as you are seeking advice on some very complex matters. Many law firms offer a first interview free service.
 

ganrad

Member
10 June 2020
4
0
1
Thanks for the response. Really appreciate it. The question remains - what is the impact on the lender for giving you the unsuitable loan?
 

Tim W

Lawyer
LawTap Verified
28 April 2014
3,629
699
2,894
Sydney
Thanks for the response. Really appreciate it. The question remains - what is the impact on the lender for giving you the unsuitable loan?
Have a read of this and this.
 

Magic

Member
22 June 2020
1
0
1
What If someone commit fraud on claiming a loan to claim a contract that is beyond evil