Customer left it too long to complain about loan transfer

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Customer left it too long to complain about loan transfer

Categories:

Lending restrictions,

Summary:

In 2009, Ajani transferred a $505,000 bank loan from his loss attributing qualifying company to his personal name. In 2023, he complained to us that the value of the property provided as security for the loan in 2009 had dropped significantly and the bank had failed to use an updated valuation. The transfer in 2009 was based on a valuation of $395,000, compared with a 2007 purchase price of $650,000.

Published:

September 2024

Our investigation

We told Ajani we could not consider a complaint if the complainant became aware of, or should reasonably have become aware of, a bank's action or inaction more than six years ago. The bank had told him in 2009 during the transfer that it was using the 2007 valuation, and that he had therefore been aware of the bank’s actions for nearly 15 years.