Bendigo and Adelaide Bank expect to launch further legal proceedings against Great Southern investors.
Bendigo and Adelaide Bank intends to launch further legal action against Great Southern investors who refuse to repay loans.
The bank has already launched proceedings against three investors, after having lodged a writ in the Victorian Supreme Court yesterday.
"It is the first case that we've brought and there will be more to follow," Bendigo and Adelaide Bank spokesperson Will Rayner said.
Rayner would not be drawn on the exact number of actions the bank expects to take.
"Obviously you go through a process and if people start repaying then clearly you don't take it to that final step," he said.
"But clearly if there is anyone who continues not to pay and goes through that process and still does not pay, then we will reserve our right to launch a court action against them."
Rayner rejected suggestions any legal action against investors was part of a bullying tactic.
"No, it's business as usual. These are normal recovery actions and court action is a last resort after having a long process of consultation with each of our customers," he said.
"We don't take this action lightly, but it is one that we do reserve the right to act out."
Despite media speculation suggesting the bank had been embroiled in Great Southern class actions, the bank is yet to receive any legal documents.
"There has been a lot of speculation in the media about class actions. We have not received any class action against us yet," Rayner said.
"We can only respond to them if and when they were launched."
Rayner said the bank had not set aside an amount to fund the legal actions.
"No. They are funded just like any other debt recovery action," he said.
In December last year, the bank denied it breached debt collector guidelines by contacting Great Southern investors over unpaid loans.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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