Defending against a Claim by a Bank or a Lender:

Disputes against banks can be greatly time-consuming, stressful and costly especially because an individual who is dealing with a bank does not have the same level resources or expertise at their disposal for dispute resolution or litigation. This is also true for small businesses which may be involved in a banking dispute and not be fully aware of their rights and remedies.

Defending a claim from a bank or lender can be a formidable experience as they often have more resources in terms of capital, professionals and experience in debt recovery matter and enforcement of obligations under a loan agreement. They may carefully draft a very detailed and long loan agreement which sets out extensive, far reaching rights and powers to the receiver as regards the grantor of the security.  There be very complex and thorough default provisions in this agreement and minimal requirements for notice and dispute resolution before a receiver can be appointed to recover debts owing to the bank. Comprehensive and sound advice from a Recovery and Insurance Lawyer throughout this complex area of law can be of significant value to appropriately and thoroughly advise you of your rights and remedies.

Firstly, banks can make claims pursuant to a mortgage. A mortgage can be for a personal purpose (for example a mortgage to purchase a property in which an individual intends to live) or for some commercial purpose. Mortgage documents can be confusing, voluminous and highly technical with legal jargon. It is absolutely essential that mortgage documents be inspected by a mortgage solicitor before they are executed. A mortgage lawyer will be able to advice the client on the terms and conditions of the mortgage document so that the person taking out the mortgage understands the breach, termination, delay clauses as well as the repossession and notice requirements.

In addition a loan agreement may be the source of bank action and litigation. A loan may be a personal or a business loan. The terms of the loan may give rise to a dispute and this may require detailed and careful analysis and investigation of the loan documents before any recommendations can be made in relation to resolving the loan dispute.

Furthermore is the issue of Interest and arrears. Disputes may arise as to the interest that is charged for a loan. Loans may be fixed or variable, or split into two parts where one is fixed and the other variable. A dispute may occur in relation to the manner in which the loans were split or the rate of interest being charged.

General advice on banking disputes and banking legal matters should be obtained by individuals and businesses who are dealing with banking institutions, credit unions or other organisations that offer finance to customers. Advice should be obtained for matters relating to the meaning of terms used in documents, the effect that provisions in mortgage and loan contracts will have on the personal and business liabilities of an individual, and whether or not a debt or liability that has arise is properly supported by contract and the law. Consultation with a Debt Recovery and Insurance Lawyer may be greatly beneficial if you are subject to liability or debt due to a contractual arrangement.

Challenging or responding to such recovery actions by a bank can be quite difficult and time consuming as the receiver (of often manager) is appointed by the loan agreement and can have wide reaching, extensive powers to deal with company assets and operations. Having proper legal and financial advice from a team of skilled Bankruptcy and Insolvency professionals may be of great benefit to ensure you are appropriately aware of your rights should this occur.

If you need further legal advice on your debt related matter, you may book an appointment with us by telephone on (02) 9233 4048 or by email to info@navado.com.au. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.