The financial regulator has appealed against the Federal Court’s decision to dismiss its landmark case against Westpac over how the bank assessed mortgage applications.
The Australian Securities and Investments Commission says last month’s finding by the Federal Court that Westpac had not breached the Credit Act’s responsible lending provisions created uncertainty over lenders’ obligations and was inconsistent with the aims of the responsible lending regime.
“The Credit Act imposes a number of legal obligations on credit providers, including the need to make reasonable inquiries about a borrower’s financial circumstances, verifying information obtained from borrowers and making an assessment of whether a loan is unsuitable for the borrower,” ASIC commissioner Sean Hughes said in a statement.
AAP