My son went to Westpac bank to try and get a housing loan. he is working casual but earning over $80 an hour so his bank balance and his weekly income is quite substantial. I told him he would not be entertained being casual but he went anyhow. The staff member interviewed him and told him to come back when his balance was $32K which was enough for a deposit on the house he was looking at. I sat in on the first interview and expressed I was stunned that him being casual and even getting this far. her response was "look at his payslips all he has to do is get that balance up to $32k"My son expressed interest in a house and went back to her and she gave him loan application forms to fill out. So he then went ahead and payed a lawyer $1100 fees as he thought it was ll going to be ok. He has now been told he can't qualify as he is not permanent. He has lost his money on the lawyers fees now. He should have been told "no" on the first day don't you think? Where does he stand here?
Tried asking the bank to reimburse his $1100 Lawyers fees as he should never have got this far. Have not heard anything back as yet as only sent it today. He has tried e/mailing the staff member who said she did not say he would get the loan at anytime which is not true.
Legally speaking, as the bank has not promised to grant the loan, merely expressed confidence that he would qualify, your son appears not to have any redress against them.
If you can establish that a person with a casual income cannot qualify, can you complain that the expression of confidence made by the bank employee was unwarranted and arguably misleading and deceptive under Australian Consumer Laws. However, I think you will find that casuals can and do obtain loans from banks, they just generally find it significantly more difficult.
Unfortunately the reality is that until a loan agreement is formally and unreservedly accepted, there is no legally enforceable agreement with the bank.
I appreciate this isn't the answer you were hoping for, however I trust it assists your understanding.
Good luck and please click accept.
Dip Law LPAB - Sydney based lawyer
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