Business & Commercial Law FAQ - Gambler, Loan Agreement with redraw facility bank did not refuse access?
Date: March 03, 2011
Q. I have been living with a man for approximately 20 years and during that time we purchased a house and an extra block of land with borrowed funds. As part of the loan agreement there was a redraw facility and when it became obvious to me he was a gambler I directed the bank to refuse him access to the account. Unfortunately this was not done and extensive debts have been run up with the bank now calling on me to satisfy the outstanding balance as we held both properties in joint names. What can I do?
A. You need to retain a solicitor urgently and have them negotiate with the bank as to what they are prepared to accept. If they are not prepared to accept a sensible arrangement then have your lawyer advise you of your rights under the Bankruptcy Act so that the protection afforded there may be available to you without having to be declared bankrupt. In the meantime if your ex-partner is in employment then seek to have his wages garnisheed to assist to satisfy the outstanding balance. If the bank has acted improperly then before you take any of the above action it may be appropriate to have your solicitor point out the nature of the bank’s involvement and the problem would never have arisen in the first place if they had done as instructed and looked to compromise the matter without proceeding to court.
