Bank properly considered requests for help before rejecting them

Categories:

Delays, Bank decisions, Lending,

Summary:

Benjamin had three home loans with the bank. After an injury in May 2024, he could not work and asked the bank for help with his repayments. He said the bank failed to respond to this and later requests, forgot about him on several occasions, and wrongly assessed that he could afford his repayments. Benjamin made no repayments to his loans from May 2024 and said the bank should refund the default interest that had accrued.

Published:

March 2026

Our investigation

When Benjamin first contacted the bank about his situation, it asked him to complete a statement of financial position. He did not return this for several weeks, and the bank tried without success to reach him. After he eventually returned the document, the bank assessed it and said his payments from ACC and continuing rental income were, in its view, sufficient for him to be able to afford the loan repayments. It declined his request for assistance, but said he should update the bank if anything changed.

Over the following months, Benjamin continued to request help, but the information he provided showed he could still afford his repayments. Each time he contacted the bank, it reviewed the information he provided and gave him the same response. Benjamin said the bank had not genuinely considered his case or treated him fairly, but the information showed the bank had been responsive to his requests and had attempted to understand why he was unable to make his repayments. The bank refunded $6,800 of default interest as a goodwill gesture, even though Benjamin was liable for default interest under his loan agreements.

We found the bank considered each request, communicated its decision promptly and explained the reasons for its decision. The evidence did not show unreasonable delay or unfair treatment.