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These excerpts are taken from a Submission to Parliamentary Inquiry.

 28 April, 2012

Senate Standing Committees on Economics

PO Box 6100 Parliament House Canberra ACT 2600

 

 

Dear Sir I Madam,

I wish to make a submission within the terms of reference above; regarding an incomplete and misleading valuation of a property, commissioned by the Commonwealth Bank of Australia, which was subsequently purchased under mortgage to the CBA.

I am now trying to sell the property, and it is worth nothing like its valuation.

This has caused me to be unable to discharge the mortgage, for which the CBA is now rejecting any form of responsibility.

 

Consequently, the valuation over-estimated the value of the property and provided a misleading basis for decision making regarding {a) the merits of purchasing at all, and (b) at the specific price that could be regarded as reasonable (c) that the CBA accepted as a basis for approval of the mortgage.

This in my view constitutes a failure by the CBA in its fiduciary duty.

 

In response to phone calls from the CBA on an almost weekly basis urging me to simply pay by selling virtually everything I own.

 

 

CBA has exerted continuous pressure to sell all our properties at any price- with no indication as to the consequences.

 

The CBA is simply taking the easiest, short term route to resolving this matter with no regard to the consequences for us, and no regard to its responsibilities arising from the valuation the CBA's decision to lend well beyond what the property is worth.

 

Clearly the CBA shares responsibility for this situation through its valuation and funding the property purchase on that basis. I have then faced the consequent issues with its use- and am expected to bear the full brunt of financial responsibility.

This means the CBA walks away from the consequences of a seriously incomplete, erroneous CBA commissioned valuation.

 

This situation threatens to destroy me financially- as I approach my retirement- and was caused by one circumstance alone- the CBA's valuation of a single property and its subsequent decision to lend against it and my acceptance of your due diligence.

 

The CBA lending decision in this case was based on a deeply flawed valuation. The CBA now expects to plunder my life-long assets because it's the simplest and easiest thing for them to do - ignoring its complicit role in creating this situation and ignoring my interests entirely.

 

I implore the Senate Committee to take on board the issues I have raised, such that the CBA will be required to take reasonable responsibility for its contribution to the current financially disastrous situation.

 

Alan F. Harrison