The Bendigo Bank - Great Southern Plantations – Investor Loan Saga has taken an unexpected turn.
The Banking Code Compliance Committee has found serious and systemic conduct by the Bendigo Bank when it aggressively collected loans from investors between February 2015 and February 2019. Some were bankrupted. Others were forced into onerous payment arrangements.
This exposes the Bendigo Bank to penalties if ASIC decides to prosecute.
Legally, this conduct is called using ‘undue harassment and coercion’ and its use to pursue recoveries contravenes the Australian Consumer Law and the ASIC Act. Financial penalties of up to $360,000 per offence are available.
In this case, complaints should be made to ASIC as it is the responsible regulator.