Bendigo Bank NoticesYou may have recently received...

Bendigo Bank Notices

You may have recently received correspondence from Bendigo Bank ("BAB") setting out its own claims in relation to the loans it obtained through its dealings with Great Southern Managers Australia Limited and Great Southern Finance.

The correspondence set out matters alleging that you are in default if you have stopped payments, the amount involved and then BAB's argument in relation to the loan under the heading "Great Southern Facts Sheet".

From our point of view, it is yet another attempt by the bank to spook people into paying loans which are under serious challenge by clients of Macpherson + Kelley.

There is an imminent class action to be launched by our clients (expected later this month). It will be grounded on the fact the bank's loans are liable to be set aside as invalid or unenforceable due to material non-disclosure of information to the borrowers about Great Southern's inability to survive and the questionable viability of numerous long-term agribusiness projects sold by Great Southern. The primary parties responsible for the non-disclosure were Great Southern Managers Australia Ltd, Great Southern Finance Pty Ltd and the directors of those companies.

The bank through its association with the Great Southern group and its practice of having had the loans written by Great Southern Finance Pty Ltd is now exposed to the very real risk of having the loan contracts set aside as invalid or unenforceable.

Success in the class action on behalf of investor borrowers would mean there would be no penalty interest payable, no default costs payable and for many people not even any further repayments payable.

Credit Ratings

Given there is a clear and detailed dispute in relation to the "debts" it would be improper for your credit rating to be affected. If an agency is contacted by GS's Administrators and/or BAB, you would only need to inform them that the debt is disputed and that this should be reflected on the register. If you are attempting to obtain finance, you can pass on our comprehensive letters which were provided to you as part of our base stage which explain your claims.

If you receive a call from a BAB representative we suggest you politely remind them you are an M+K client, are receiving legal advice and that they are not to contact you directly again.

We have advised BAB's solicitor that if the recent conduct continues then we will notify the ACCC.

Please contact Ron Willemsen, Stuart Walter or any member of our litigation department should you have any questions.


Ron Willemsen
Principal
Accredited Commercial Litigation Specialist

Macpherson + Kelley Lawyers
40-42 Scott Street, Dandenong Vic 3175 | DX 17501 Dandenong
Ph: (03) 9794 2625 | Fax: (03) 9794 2560
[email protected] | www.mk.com.au