CREDIT POLICY FOR FINANCE D.R. PTY LTD (ABN 62 120 020 055) AS TRUSTEE FOR THE ARTHUR HOLDEN FAMILY UNIT TRUST TRADING AS CONNECTED HOME LOANS (ABN 43 761 097 839). UPDATED 18 MARCH 2011.
We are obliged prior to providing credit assistance to ensure the proposed transaction is not unsuitable. Credit Assistance is given when we:
- suggest that a consumer apply for a loan, an increase to a loan, or a lease with a particular credit provider;
- suggest that a consumer stay with an existing lender or lessor; or
- assist a consumer to apply for a loan, an increase to a loan, or a lease with a particular credit provider.Unsuitable – to determine whether proposed credit is unsuitable, we must:
- make reasonable enquiries about the consumer’s requirements and objectives;
- make reasonable enquiries about the consumer’s financial situation; and
- take reasonable steps to verify that financial situation.Credit will be unsuitable if at the time the preliminary assessment is made, it is likely that:
- the consumer will be unable to pay or could only pay with substantial hardship; or
- the credit will not meet the consumer’s requirements and objectives;if the consumer enters the credit contract, lease contract, or the principal sum is increased within the time for which the preliminary assessment applies (up to 90 days).
In order to make this assessment, we are required to establish our own credit policy. The key elements of our credit policy are: 7402891.1 JAD JAD
- the consumer’s requirements and objectives;
- loan to value ratio (LVR); and
- the consumer’s financial position – enquiries and verification.Rather than develop our own discrete policy, because the proposed credit also needs to fit within the requirements of our panel of credit providers, our credit policy will comprise a combination of all our panel credit providers’ credit policies.Each time we approve a new credit provider, or a credit provider changes its credit policy, we will review that credit provider’s policy and in particular review the four key elements listed above.
We will make our own assessment as to whether each particular policy is appropriate.
When each credit provider’s credit policy is approved, that policy is added to our ‘approved policy list’.
As a consequence, our credit policy is ‘if an application fits the policy of any approved credit provider, then that credit will comply with our credit policy and the credit should not be unsuitable’.
As a result of each credit provider’s policy being reviewed prudently, the mere fact that a particular application only fits the criteria of one of those credit providers does not mean that that credit is unsuitable.
In addition to what is written in these policies, we need to be alert to the special circumstances of each consumer and each proposal for credit which may make a particular credit unsuitable.
A written record (which may be electronic) will be made of each preliminary credit assessment specifying the period it covers.
We wish to advise you that Finance D.R. Pty Ltd trading as Connected Home Loans is a member of the Credit Ombudsman Service Limited, member number 412 701, and their contact details are as follows:
Credit Ombudsman Service
ABN 59 104 961 882
Level 7, 287 Elizabeth St
Sydney NSW 2000
PO Box A252
Sydney South NSW 1235
P 1300 78 08 08
F 02 9261 2798
E [email protected] W www.creditombudsman.com.au