Bendigo blacklists customers
(13 April 2010 – Australia) Bendigo and Adelaide Bank has supplied credit agencies with the names of 1,600 of its clients who refused to pay back loans used to invest in agribusiness group Great Southern.
However, the bank did agree, after a four month fight in the NSW Supreme Court, not to hand over the names of 300 borrows who challenged the bank’s rights to give their details to credit agencies over the debts.
The lawyer for financial planner Steve Navara and his clients argued that the bank shouldn’t be authorised to relinquish the details until it had been proved that the loans, which were originally provided by Great Southern, had been validly assigned to the bank.
Bendigo Bank’s spokesman, Will Rayner, said that by agreeing to Mr Navra’s demands to withhold the details it would just speed up the debt recovery process by the bank simply suing the customers for the unpaid money.
The lawyer for financial planner Steve Navara and his clients argued that the bank shouldn’t be authorised to relinquish the details until it had been proved that the loans, which were originally provided by Great Southern, had been validly assigned to the bank.
Bendigo Bank’s spokesman, Will Rayner, said that by agreeing to Mr Navra’s demands to withhold the details it would just speed up the debt recovery process by the bank simply suing the customers for the unpaid money.
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