Australia's leading provider of affordable DIY legal kits
Call our Customer Care Specialists on 1300 728 200

Legal Forum

Welcome to the FREE AussieLegal Forum

This FREE legal forum is supported by participating lawfirms in your local area.
The information contained in this public forum, and any comments made by the administrators, it's appointed mediators, or members of the public are of a general nature and may not be regarded as financial or legal advice in any way. We recommend that you seek formal advice from a practicing solicitor or licensed financial advisor regarding your particular situation. By registering to use this forum you meet the above criteria and agree to abide by all of the above rules and policies.

To be sure we provide you with the most relevant information to your state, please let us know which state you your legal matter resides in:


AussieLegal recommends this law firm:

  FAQ FAQ  Forum Search   Register Register  Login Login

minimum repayment and redraw

 Post Reply Post Reply
  Topic Search Topic Search  Topic Options Topic Options
nose View Drop Down

Joined: 27/November/2015
Location: Australia
Posts: 29
  Quote nose Quote  Post ReplyReply Direct Link To This Post Topic: minimum repayment and redraw
    Posted: 27/May/2018 at 23:21
On a PI loan , extra repayments are made and the balance comes down. Bank says they wont reduce the minimum repayment to reflect what is owing unless redraw is removed.
Is it legal?
in contract the only thing I can see is that they can remove redraw at any time, which I never liked in the first place but was told their contract was not negotiable. Now they are forcing me to make repayments based on the original amount of the loan. They say they will only charge interest on the loan balance not on the original loan. According to them , even if I am down to the last $10 , I will still pay the higher repayment amount .
Can they blackmail me with redraw removal threat?


citizen-joe View Drop Down
Senior Member
Senior Member

Joined: 09/October/2005
Location: Australia
Posts: 759
  Quote citizen-joe Quote  Post ReplyReply Direct Link To This Post Posted: 28/May/2018 at 00:11
Is it legal?

Probably as you could redraw the extra payments and the loan would still be at it's original value.

If you don't want the redraw facility, write to them to have it canceled and request the monthly payments be adjusted to reflect the higher payments you have made.

 Post Reply Post Reply

Forum Jump Forum Permissions View Drop Down

Want to save money?

Check out our list of do-it-yourself legal kits.

Need formal advice?

Let us help you find a lawyer who specializes in your particular area of law.

Need further information?

Visit our legal forum where you can ask questions and search for similar topics.