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Ask Deborah Awyzio Your Own Question
Deborah Awyzio
Deborah Awyzio, Solicitor
Category: Australia Law
Satisfied Customers: 863
Experience:  Bachelor of Laws (QUT), BIT (QUT), Family Law Accredited Specialist, over 12 years experience
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I am wondering if I could get some preliminary advice

Customer Question

Good Evening,I am wondering if I could get some preliminary advice regarding a potential claim for "Irresponsible Lending".A previous employee of my company resigned approx 5 months ago due to a severe lower back pain condition - in combination with suicidal depression. Prior to resigning he made on-line applications for three personal loans - all at different times. The first one was approx 20 months ago - and was approved for $42,000.00. the second one was approx 9 months later - and was approved for $15,000.00. The third one was approx another 11 days later again - and was approved for $15,000.00.The total repayments for these three personal loans equate to $684.50 per week. His current 'Newstart Allowance' while unemployed is only $268.20 per week. Even prior to resignation his take home pay per week was an average of $840.00 per week. As a result of these facts the subject personal loans have fallen into arrears by approx $11,500.00.The current advertised interest rate for the Commonwealth Bank is 13.9%. The current interest rate being charged on the subject loans is 16.9%. the interest component is currently accruing at $214.84 per week - and compounding.Even prior to unemployment - the subject repayments represented almost 82% of his disposable income.My question is - do we have a case for "Irresponsible lending" that we could use to make a submission to the bank to request they combine the loans - and drastically reduce/negotiate interest rates in order to make a payment plan that will avoid personal bankruptcy. I guess I am looking for a basis to help this guy make this representation - and would appreciate some guidance on how far we can play the "irresponsible lending" card - even if it is only in the form of a negotiating tool.
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.

Good Evening.

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise but a guide to assist you.

What did he put down in his application.

The bank will base their decision on what he told them and is he was honest, and they lent it to him then you can being an action. But before you start anything you have to see what the bank was aware of and what they did.