AUSTRALIA'S banks could be facing a massive new class action over allegations that their mortgage lending practices have put thousands of families in severe financial stress or at risk of losing their homes.
Organisers estimate that up to 300,000 mortgage holders would be eligible to participate in the action, which is expected to focus on first home buyers and lower-income households who received loans since the onset of the global financial crisis.
The proposed lawsuit has drawn qualified support from law firm Maurice Blackburn, which is already engaged in the country's largest class action over alleged fee gouging by the big banks.
The potentially landmark case is being orchestrated by retired British insurance broker Roger Brown, who will seek claimants through the website takingonbanks.com in early April.
''The people we are talking about are experiencing severe financial hardship through no fault of their own because they shouldn't have been given a home loan in the first place or they have been lent way too much money,'' Mr Brown told The Sunday Age. ''I think the banks have a case to answer for the irresponsible way they have been lending.''
The case is expected to be argued under provisions of the Competition & Consumer Act and the National Credit Code that prohibit unfair contract terms and reckless lending.
Read more: http://www.theage.com.au/business/banks-face-home-loan-suit-20120114-1q0pt.html#ixzz1jUjS1yP4
http://www.takingonbanks.com is the website to launch in April:
@bankcustomersTaking On Banks
Our website will be up and running from 13th April 2012.
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