Bendigo and Adelaide Bank has agreed not to put 273 Great Southern investors who have stopped repaying their bank loans onto a credit agency blacklist, giving the investors a reprieve from punishment although it may be only for Christmas.
The Australian Financial Review reports that lawyers for the bank and Navra Financial Services, a financial planning firm that recommended Great Southern-managed investment schemes to its clients, were due to appear in NSW Supreme Court this morning.
But agreement was reached on Friday, the bank saying it would not proceed with its threat to hand over the details of clients who have stopped paying their loans to Veda Advantage, a credit agency that lists people who have defaulted on loans.
Both sides declined to comment on how the agreement was reached saying the terms were confidential. However, it is understood the bank has promised not to blacklist defaulters over the Christmas period. It is unclear whether it plans to push ahead once the case returns to court in February.
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