Court declines to pinpoint source of repossessions
A request by the Australian Bankers Association and the Consumer Credit Legal Centre for access to files that would show which lenders were responsible for the majority of legal actions has been denied. The NSW Supreme Court has said that reviewing the 18,000 files would raise concerns about privacy and that the court would not undertake research that could be used to advance a private or commercial cause. The ABA argues that its members, mostly major banks, are responsible for only 20 to 35 per cent of home repossessions and that it is non-bank lenders who launch the majority of such actions. The non-bank sector accounts for approximately $172 billion in residential mortgage-backed securities and about $7 billion of that is classified as “sub-prime”.