Arrears grew, and in early 2024 the bank suggested Brittany try to sell the property. She took up the suggestion but was unable to sell it. By July 2024, arrears stood at $56,000. The bank issued a notice under the Property Law Act 2007 and began charging Brittany the legal costs associated with this step. She complained that charging her for these costs was unfair. She also said the bank was not taking into account her difficult circumstances and should not have declined her request for help.

Our investigation

Banks do not have to help customers in financial hardship, but they do have to consider offering them help. Borrowers in financial difficulties are entitled to ask their lender for help such as deferring loan repayments, extending the term of a loan and switching to interest-only repayments – changes that generally increase the amount the borrower must eventually repay. We found the bank did take into account Brittany's difficult circumstances. It considered (but did not agree to) repayment proposals for the arrears, and it allowed her time to try to sell the property, despite the growing and significant arrears. We also found that the bank was obliged to seek the consent of her former husband, as a co-borrower, before considering what help it might offer. In short, the bank treated her fairly and reasonably.

Outcome

We did not uphold Brittany's complaint.