Second Storm case filed against Bank of Queensland
Slater and Gordon have filed its second court case against the Bank of Queensland for its role in Storm Financial.
The claim was filed in the New South Wales Supreme Court on behalf of Mark Mario Schabas. It is the first case filed in NSW.
Slater and Gordon alleged the bank engaged in misleading and deceptive conduct in relation to its lending practices.
It also alleged that the bank failed to verify Schabas’ income prior to giving him a margin loan, was silent about the risks associated with the geared investment, and engaged in statutory unconscionable conduct in providing the financing for the margin loan.
Schabas, a low-income earner nearing retirement, was forced to sell his home in June this year to pay a $312,000 loan taken out against his home in 2006.
“We allege that Mr Schabas followed the bank’s advice to invest, through Storm, in high risk index funds. He suffered loss and damage when his highly geared investments were sold and he was left with virtually nothing but the debt to the bank,” said Slater and Gordon practice group leader Damian Scattini.
Recommended for you
Multiple industry organisations have shared their thoughts on AFCA’s proposed rules amendment, supporting the idea of firms being named publicly when they fail to comply with determinations.
Channel Capital has appointed a head of investment oversight who joins from 14 years at asset consulting firm JANA Investment Advisers.
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
