Banks are not evil, say lawyers

by Caroline Dann18 Oct 2012

A leading law firm has come out in defence of banks, claiming borrowers ‘get what they want’ and are not victims of any wrongdoing.

 
Gadens Lawyers partner, Jon Denovan, said in the vast majority of cases where borrowers lost investments or homes, or declared bankruptcy, it was “not the bank’s fault.”
 
“It’s becoming increasingly incorrect to speak loudly and strongly in favour of lender’s rights. That doesn’t mean that consumers don’t have rights and that they should be properly protected,” he said.
 
“The law and EDR schemes are doing a great job of doing that. It’s just that the lenders aren’t the evil people so often claimed.”
 
He paraphrased the judgement on a recent case brought before the courts.
 
"Except for NCCP regulated loans, the law does not recognise any duty upon a lender to assess whether a borrower is able to repay a loan. 
 
“Nor must the lender ascertain the viability of the loan or verify the details provided in the loan application. A lender is not a branch of a social services agency.”
 
He called for a more “realistic” approach in tribunal hearings and courts were issues of lender responsibility were concerned.
 
“The borrower gets what he or she wants. Borrowers are not victims and an attempt to portray themselves as such is simply at odds with commercial reality.”
 

COMMENTS

  • by JohnW 18/10/2012 10:14:59 AM

    Standing ovation from me. It's certainly popular for people to point blame at others and avoid responsibility in these here topsy-turvy-nanny-state times.

  • by Broker Tony 18/10/2012 10:23:18 AM

    Harsh assessment but true. Banks and brokers do not drag people off the street and coerce them into borrowing more money than they can afford. Borrowers have to accept responsibility for their own actions. Financial problems usually ocur following a change of circumstances that could not have been forseen by the lender. The main legitimate complaints would be around the way the lenders work through the difficulties with the client and plenty of improvement is needed in this respect.

  • by MeganM 18/10/2012 10:29:37 AM

    Borrowers need to take more responsibility for their actions and take steps to understand the contracts and risks they are entering into. Too many people are driven by greed and look to blame someone else when things go wrong.