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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22555
Experience:  37 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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I have a question regarding someone I know. They are dairy

Customer Question

Hi I have a question regarding someone I know. They are dairy farmers experiencing extreme pressure from their bank. I am not sure exactly what their situation is but they said that the bank has trippled their interest rate. Is this legal?
JA: What state are you in? It matters because laws vary by location.
Customer: They are in New Zealand
JA: Has anything been filed or reported?
Customer: No I just wanted to check
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 2 months ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 2 months ago.

The bank mortgage will have clauses about any increase in the interest rate. They have the power to do this after giving notice, and generally raise the interest rate when they see a credit risk. That may not seem entirely logical, because it increases the pressure, but it is common practice in my experience. Bank mortgages generally give considerable powers to the bank to increase or lower interest rates as they see fit.

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