How AFCA helped Ankit sort out his loan complaint

Summary

Ankit shares his experience of applying for a loan to renovate his house, only to face financial stress after falling ill. Despite seeking help from his bank to lower repayments during his recovery, he received no assistance. Ankit then reached out to the Australian Financial Complaints Authority (AFCA), which facilitated a conciliation conference. After explaining his situation, the bank agreed to reduce his repayments for three months. This allowed Ankit to regain his health and resume work on his home. The video highlights the importance of seeking help when facing financial difficulties.

Takeaways

• 🏠 Ankit applied for a loan to renovate his house, marking an exciting achievement.
• 😷 Unexpected illness caused Ankit to be unable to work for several months.
• 📞 When seeking help, Ankit was told by the bank that they couldn't lower his repayments.
• 😟 Ankit experienced stress and worry about falling deeper into debt due to his situation.
• 📋 He decided to lodge a complaint with AFCA, a free service for resolving financial complaints.
• 🤝 AFCA contacted the bank, but the complaint remained unresolved initially.
• 🗣️ A conciliation conference facilitated by AFCA allowed Ankit to explain his situation in detail.
• 💬 Ankit highlighted that his mortgage provider had already lowered repayments, seeking the same from his loan provider.
• ✅ After hearing Ankit's case, the bank agreed to reduce his repayments for three months.
• ✍️ The agreement was confirmed in writing by AFCA, providing a resolution to Ankit's complaint.

Q & A

What was Ankit's initial motivation for applying for a loan?

Ankit applied for a loan to renovate his house, which felt like a significant achievement for him.

What unexpected event occurred after Ankit started his renovation project?

Ankit got sick, and his doctor advised that he wouldn't be able to work for several months.

What did Ankit hope to achieve by contacting his bank?

Ankit hoped the bank could lower his loan repayments while he was recovering from his illness.

How did the bank respond to Ankit's request for reduced repayments?

The customer support officer informed Ankit that there was nothing the bank could do to assist him.

What were Ankit's feelings after the bank's response?

Ankit felt stressed and worried about falling further into debt, feeling that the bank did not understand his difficult situation.

What action did Ankit take after being dissatisfied with the bank's response?

Ankit decided to file a complaint with the Australian Financial Complaints Authority (AFCA).

What is AFCA, and what role did it play in Ankit's situation?

AFCA is a free service that helps resolve financial complaints. It contacted Ankit's bank regarding his complaint and facilitated a conciliation conference.

What outcome did Ankit achieve through the conciliation conference?

After discussing his situation in detail, the bank agreed to reduce Ankit's repayments for three months.

What was the final agreement between Ankit and the bank?

Ankit accepted the bank's offer to lower repayments temporarily, and AFCA confirmed the agreement in writing.

What did Ankit do once he was back to full health?

Once Ankit recovered, he returned to work, and his loan repayments went back to normal, allowing him to continue his home renovations.