Casey complained about the bank giving him conflicting reasons for declining his application and for retaining the bankruptcy information on its file. He said the record of the debt should have been wiped from the bank’s records when he was discharged from bankruptcy.
We accepted the bank had followed its normal lending criteria in declining Casey’s application. We also agreed the bank’s communication of its decision was not satisfactory. We pointed out to Casey that while there were time limits on retaining bankruptcy information on public registers and by credit-rating agencies, these time limits did not apply to an organisation such as a financial institution who had provided credit to its customers.
The bank was entitled to retain the historical credit information on file because such history remained a possible relevant factor in assessing future credit applications.
Casey accepted our explanation and the bank’s offer.Print this page