by Mickell  25/01/2016  72 Page Views
0 Comments  Discuss legal issues that are of a general nature
Are typical bank mortgages subject to the Australian Competition and Consumer Act 2010 section 21 pertaining to unconscionable conduct? We sold our house in November 2015 which had about $81,000 of equity funds available for disbursement and the bank credited all of this money against a mortgage we had on a second (rental) property against our wishes because we had some accounts (cards, loans, both mortgages) that were over limit and/or overdue. We could have improved our cash flow situation enormously by crediting part of the $81,000 to credit cards and by completely paying out a $7,000 loan with repayments of $174 per week. We wonder whether the bank's actions contravene section 21-2-b of the Act given that both mortgages had insurance cover meaning the bank's "legitimate interests" were not at risk. A personal loan with the same bank of $49,000 costing $274 per week could have been paid out. The bank's actions saved us just $123 per week on the mortgage (notwithstanding issues pertaining to duration). Mickell2016-01-26 07:49:43