Back to ANZ…”Customer Relations”

The response from ANZ’s regional manager said that there are circumstances when ANZ has an obligation to tell a guarantor about changes to the lending that they are guaranteeing. These include when:

there are changes change that are likely to affect the guarantor’s decision to give, or continue to give, the guarantee; or

there is a  significant increase or change in lending beyond what would be contemplated by the parties when the guarantee was given.

This is what ANZ described as a ‘material change’. I don’t think that I am being silly if I consider the advance of hundreds of thousands of dollars of credit as a change likely to affect my decision to give or continue to give the guarantee. In the same vein, advancing that level of credit is certainly well beyond what was contemplated at the time that I gave the guarantee. Things like:

the purchase and/or sale of property; the approval of significant new loans;

the point when the company’s debt exceeded the value of its assets and thus directly impinged upon the guarantor;

applications, approved or otherwise, for mortgage holidays as these are generally indicative of cash flow issues within a company and which may thus directly affect the guarantee; and

instances where the company has defaulted in loan payments.

I wrote back stating that I believed that these circumstances existed in this case and asking ANZ to uphold its obligation. This is a major bank that undertakes in the Code of Banking Practice to treat its customers fairly, reasonably and ethically.

She didn’t answer respond and passed me to ANZ’s Customer Relations team…

In The Dukes of Hazzard, this is about where Waylon Jennings would drawl “Now, folks, this is what you call getting the good ol’ Hazzard run round…”

Seriously, had ANZ responded and cited the actual legislation that prevented it disclosing this information to me, I would not have been happy but que sera sera and I would have started packing…

…but…

…get this…

ANZ

…has not…

…once…

…stated, cited or otherwise referred to any law that prevents it disclosure information on company lending to the guarantor of that lending…

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