Bank considered, and declined, application within reasonable time

Concerns about lending decisions,
In May 2021, Basil asked the bank for a loan to build a house on a section he owned. The bank assessed his application as both a construction loan and bridging loan, and five weeks later declined his application.
August 2023

Basil considered the bank took an excessive amount of time to assess his application, and that he suffered financial loss and stress as a result.

Our investigation

We told Basil our rules prevented us from looking at the merits of the bank’s decision to decline his application – because this was a matter of commercial judgement – but our rules did allow us to look at whether the bank followed a correct process in assessing his application.

We also told Basil a bank had no obligation to assess a loan application within a particular time, although we generally expect banks to collect and consider information for such an assessment within a reasonable time, and to clearly communicate the outcome. After reviewing all the relevant information about the bank's assessment of Basil’s application, we found the bank had done so within a reasonable time. It had worked with Basil to collect and consider information to assess his application in two different ways under its lending policy during the five weeks. It had then clearly communicated its decision to Basil.


We did not uphold Basil’s complaint.

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