Our investigation
We found a five-week period during which the bank took no action on the application. The bank said it had agreed with Hubert and Kara that the application was not urgent because it had approved interest-only repayments on their home loan in November. However, we found no evidence of such an agreement.
We also found three months to be a reasonable timeframe to assess the application because Hubert kept increasing the amount of lending sought, and on the face of it, the application was in breach of its lending policy and required a manual review. The bank was within its rights to decline the application and was not obliged to approve it.
Outcome
The bank offered $2,000 compensation for inconvenience, which Hubert accepted.
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