Angela* contacted CCLS in relation to a $70,000 shortfall debt arising from a home loan. English was not Angela’s first language and at the time the home loan was taken out, she was new to Australia and experiencing domestic abuse, including financial abuse. The shortfall debt had been assigned to a debt collector who was pursuing Angela.
Angela instructed CCLS that she had no recollection of signing any documents and was not aware that she was a party to the loan. CCLS raised concerns with the debt collector and requested copies of all loan documents, withdrawal of the default notice and that they cease collection. They agreed to cease all collection activity while they investigated further. Ultimately, they confirmed that the lender was willing to waive Angela’s liability. CCLS solicitors then assisted Angela finalise a deed of settlement.
*names have been changed
A client approached us about her credit card debt. She had suffered a serious head injury before taking out the card, affecting her physical and mental health.
Despite being on a Centrelink benefit and facing financial hardship, her credit limit was increased from $1,000 to $6,000. The client repeatedly informed the bank of her situation, but her hardship requests were dismissed.
Due to unforeseen circumstances, she lost her supplementary income and couldn’t keep up with repayments. We reviewed her case and found the bank failed to consider her hardship requests, apply responsible lending and follow the ABA Banking Code. After lengthy negotiations, the bank agreed to waive the $6,000 balance on compassionate grounds.
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