Bank not obliged to agree to vary loan agreement

Lending restrictions,
Chantal had a property in her name and wanted to change it to a trust name. The bank said she would have to break her fixed-term loan and apply for a new loan. Chantal complained that the bank's actions disadvantaged her because interest rates were rising.
February 2022


Our investigation

The terms and conditions of the loan said she could not transfer the title of her property without the bank’s written consent. The bank was not therefore obliged to agree to her request. We also found the bank's policies and procedures for assessing any commercial risk arising from the requested change, as well as meeting its legal obligations, did not breach a duty or obligation owed to Chantal.


We did not uphold Chantal's complaint.

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