Bank Foreclosure Fees in Spotlight

Michael West, former investigative business journalist at Fairfax Media reviews the insolvency practitioners (and associated parties) fees in the recently settled case between Burrup Fertilisers and the ANZ bank.

Many former Bankwest commercial loan customers have experienced first hand the excessive costs charged by receivers with little to (in most cases) no accountability as to how the exorbitant fees were arrived at.  In addition, these former customers experienced an apparent failure of insolvency firms to realise even close to market value of assets realised in foreclosure.  This left former customers with massive shortfalls, with many bankrupted as a result.

Such conduct should form one of the key areas of investigation of a Banking Royal Commission #banksRC, both for Bankwest victims and more broadly into other banks.

Bankwest Class Action was established by law firm Hall Partners to address alleged unconscionable conduct by the Commonwealth Bank of Australia (CBA) following the acquisition of Bankwest in 2008. The acquisition was led by Ian Narev, who is now the CEO of CommBank.  it is understood from evidence provided to a parliamentary inquiry by CBA Group General Counsel David Cohen in December 2015, that 1958 Bankwest loans were constructively defaulted and forced into insolvency.




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