Lenders are refusing to give borrowers copies of the loan application documents, according to a report in The Australian.
It said Bendigo and Adelaide Bank has told borrowers they are not entitled to copies of their applications, while other lenders have told borrowers that such documents have been destroyed.
In many cases, the borrowers affected took out low-doc loans.
The issue is related to a campaign by a consumer group, Banking and Finance Consumers Support Association, claiming that lenders falsified loan documents to provide inappropriately large loans to certain borrowers.
A BFCSA representative gave evidence to the Senate Standing Committee on Economics banking inquiry this week.
