Blue Chip ruling a relief for lenders
If the decision had not been overturned, lenders would have had to take responsibility for borrowers signed up by third parties, such as mortgage brokers.
The Court of Appeal had found earlier that loans the retired couple took out to buy an apartment in Auckland were "oppressive".
Before that, the High Court found the Bartles had little understanding of the scheme, which was very disadvantageous for them. But it also concluded the loans were not in breach of reasonable standards of commercial practice and thus were not oppressive.
James Lockie of Cairns Lockie says he was surprised by the Court of Appeal decision and concerned about what it meant for lenders in terms of looking into client's affairs to see whether they were engaging in sensible decisions.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
