Westpac customer protests at loan refusal

Mapua-based man withdrew all his $190,000 in savings in $20 notes from Westpac today and deposited it in Nelson Building Society in protest at the bank's refusal to grant him a mortgage.

The Nelson Mail reported that artist Roger Griffiths met the 20 percent deposit criteria with $200,000 of cash for a $385,000 property, but his application for a $80,000 mortgage was rejected because he did not have regular income.

The customer of 25 years was angry that the bank did not support him.

Westpac said Mr Griffiths did not provide information relating to his ability to meet regular payments.

Westpac has been in the news recently on a range of issues. A banking error saw $10 million credited to Rotorua businessman's account after he asked for a $100,000 overdraft.

The bank has $111.4m of loans to collapsed clothing company Lane Walker Rudkin and it is currently in court over a disputed tax assessment of $903m.

The bank has launched a four-year sustainability plan with 10 goals, of which one is to educate 45,000 New Zealanders through free money management workshops and online tutorials.

Other goals announced by the company included raising $1 million a year for Westpac Rescue Helicopters, helping 2000 disabled New Zealanders participate in sport and leisure, reducing the bank's carbon emissions by 20 percent per active customer, reducing waste to landfill by 40 percent, and removing 1 million pieces of rubbish through the Care for our Coast programme.


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Whilst I can understand the customer's frustration, he doesn't have a right to have a service provided. Westpac are making a commercial decision.

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Is this really news? What would happen in a years time when this customer made no payments and then complained that the Bank should not have given him the money and therefore should not have to pay it back(as as happened alot recently)

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We've experienced first hand through break-fees what Westpac is like. A bunch of buggers if you ask me. Avoid them New Zealanders!

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I have a friend who received the same response from Westpac,but was successful at BNZ.

Westpac,like mostl banks, have changed their policies,and are now not happy with applications which are equity based and do not demonstrate an assured positive cashflow.

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Indeed. How is he supposed to repay his mortgage with no income. Surely a better piece of journalism would point out that Nelson Building Society have been good enough to give him a home loan. But I rather fancy they haven't done that BECAUSE HE"S GOT NO INCOME! If Westpac had given him a home loan then you would have written about banks and their irresponsible lending practices and them profiteering through inflating interest rates to poor little Kiwis. Write about something else you muppet!

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if you look around you might notice we have been taken over economically by australia.this is why we are struggling.our money is being siphoned to australia.

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Just wanted to put some facts straight here.. Westpac NZ is different to Westpac AU. NZ$ is NOT going to Australia when banked with Westpac New Zealand.

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That's 9500 $20 notes.

That would more than fill my bath tub. Very nice.

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To have fallen back to the minum 20% equity the bank requires this gentleman would have had to miss a total of $123,000 of repayments. Does this sound like a risk? Only to the dumb generation. This is the generation you find in so many businesses. They follow processes, but don't think.
We were in another bank today wishing to put an amount of money on a fixed term deposit. The bank officer said they had a new system; they entered the amount we were wishing to deposit and told us that the system said we should keep 20% of it as cash for general issues and fixed term the rest. We explained that we already had enough in cash - see, that's what they call the balance!

This man shold find a mortgage broker.

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Tough yes, the guy has 25years of history with WestPac that should stand for something. But perhaps the history is of very poor control over his account and the $190k is an inheritance.

Any way, the bank needs a deposit (great, the more they do this the more affordable housing will be). The bank needs proof of ability to repay the loan (great, who would lend to someone hoping they can pay).

In the USA the loans to customers who could not provide proof of earnings were called no-doc or low-doc loans, and although they aren't the whole problem with the US over inflated, now deflated property market these types of loans contributed to the mess.

Good on you WestPac.

Nelson Building Society, hope it works out, but if it doesn't there is a pretty obvious reason why, He doesn't have regular income and Roger may have a couple of bad years. Still with the equity in the property it can always be flicked in a mortgage sale putting more donward pressure on prices. Perhaps thats the plan.

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A complete waste of time journalism! Westpac made a good commercial decision. Lets appluad them for that.

"Westpac Hater" - Westpac are probably glad they haven't got you as a customer after your comment to avoid them as a bank ...... Westpac employ 6000 New Zealanders!!!! Please write a more sensible comment in future.

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The key line in this sensationalist article is that Mr Griffiths did not provide information relating to his ability to meet regular payments. Would you lend $80k of your own money to some angry retard who refused to give you any information as to how he was going to pay you back? The bank's primary exit is through regular repayments, not the sale of the property.
I can't believe this article made it onto the NBR.

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sarah says the dollars arent going to aussie.the profit westpac nz makes goes to aussie.they might have 6000 jobs but the profit goes overseas and how does nz benefit from that.it doesnt.the aust banks are milking us dry by taking the profit out of nz and that profit should have been used for nz not aussie.

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