Bank acted fairly despite tight deadline to consider loan request

Home Guides & cases Case notes Lending - 70697

Bank acted fairly despite tight deadline to consider loan request

Categories:

Concerns about lending decisions,

Summary:

Jacob found a property he was eager to buy. The property was to be sold by auction. He sought the bank’s approval for a loan so he could bid at the auction. However, he sought the approval just three days before the auction date and did not have all the information the bank required. He asked the bank to give him conditional approval so he could bid on the day, but it said it could not. He complained to us that the bank should have done this.

Published:

October 2021

Our investigation

We considered the bank had responded to his application in a fair and reasonable way. We noted that the staff member handling the application had, in fact, worked through a public holiday to try to get further information, and also warned him at the outset that the bank would not be able to process his application within the timeframe he was trying to work to.