Saturday, 9 May 2015

Banks DO have a legal obligation to abide by the Banking Code of Practice.

Very important ruling by the Courts - rules that the Banks DO have a legal obligation to abide by the Banking Code of Practice. "It's a significant decision because it means banks will be held to account if they say they are going to give certain information or make certain disclosures and then don't." The Bank tried to make out that it's 'errors' in their documents were not important, the Judge said that the errors WERE significant, and the Judge raised serious doubts about the evidence from the Bank manager. The Judge said that "the borrower could not have met his expenses from his income." The Bank knew that he didn't earn enough to pay for the loan, yet they approved the loans - because they thought that they could take his home & his properties if it all went pear shaped! This is pure asset lending by the Bank.http://www.smh.com.au/business/court-rules-nab-unable-to-recover-gold-coast-millions-due-to-breach-of-banking-code-20150508-ggwjp6.html

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