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.
Jill* contacted a finance broker to assist her in applying for a loan to purchase a car.
With the brokers assistance, she was approved for a $10,000 loan. At the time of the approval, she was unemployed, had dependent children and thousands of dollars in debt. The salesperson at the car dealership spoke directly to the finance broker, the loan was provided and Jill received the car that day.
Shortly after taking out the loan, she realised she was not able to afford the repayments. Within a month of the car’s purchase, Jill experienced multiple issues with the car. Within 11 months the car was undrivable and Jill was quoted $7,000 for the car’s repair (almost 75% of loan value!).
Jill was referred to CCLS for advice by her financial counsellor.
CCLS negotiated with the finance broker and the credit provider on the grounds that the loan was unsuitable. The finance broker immediately agreed to refund the broker fee. The credit provider denied wrongdoing, and CCLS subsequently lodged a complaint with AFCA. The credit provider then agreed to refund all interest and fees applied to the loan account, not to charge any further fees or interests and to waive 50% of the outstanding balance on the loan.
CCLS also negotiated with the car dealership. A resolution could not be agreed and CCLS then lodged a complaint with Consumer Protection WA who assisted the car dealership and the client in negotiating an agreed resolution. The car dealership offered to provide a cash settlement based on a quote to repair the car and to allow the client to keep the car.
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.
*names have been changed
