How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Chris The Lawyer Your Own Question
Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22979
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
Type Your New Zealand Law Question Here...
Chris The Lawyer is online now
A new question is answered every 9 seconds

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: 8 months ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 8 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.