In 2002 the borrower borrowed from the lender secured by mortgages over land. Included in the security documents executed by the borrower was a business purpose declaration signed by the borrower.
The borrower brought proceedings in the Consumer Tenancy Tribunal seeking relief under the Consumer Credit Code. The borrower argued that the letter of offer he executed before he executed the business purposes declaration was a contractual document for the purposes of the code and therefore the business purposes declaration had no effect.
The Consumer Tenancy Tribunal agreed with the lender and dismissed the borrower’s claim. The present case was an appeal from the decision of the Consumer Tenancy Tribunal and concluded with Associate Justice Harrison affirming the decision of the tribunal.
This was then subsequently overturned on appeal Bahadori v Permanent Mortgages  NSWCA 150. Click here to see our case note on that decision.