Customer says she flagged the mistake, only to have it ruin her life
What began as a routine loan adjustment has left a Brisbane woman in her 70s fighting ANZ in court for the past eight years, after the bank mistakenly discharged both mortgages on her home. Although she reported the error herself, the case has dragged on, with mounting legal fees leaving her financially and emotionally devastated, according to a report by news.com.au.
The issue began in 2017 when Maria (not her real name) converted her $700,000 investment loan into a home loan and requested the release of a second mortgage. Due to what a judge later described as an error not caused by Maria, ANZ discharged both mortgages. She only discovered the mistake when trying to sell the property in 2018 and promptly informed the bank.
Rather than resolve the issue, ANZ placed a caveat on the property, let it lapse, and remained inactive for more than a year. Then, in early 2021, following an anonymous letter claiming Maria planned to sell, ANZ launched legal proceedings—without initially informing her. Maria said the case has since stalled, with no meaningful progress since 2022, despite repeated requests for mediation.
Maria claims the bank accused her of fraud and has refused to settle the dispute out of court. The situation has taken a toll on her mental health, with her psychologist warning that the drawn-out case could be considered “torturous.”
Financially, she’s drained her superannuation, borrowed from friends, and racked up $300,000 in legal fees. She hasn’t made any mortgage repayments since 2019, and with interest piling up, the amount owed is now around $800,000. The property’s market value is estimated at $1.8 million—but she fears she’ll be left with nothing once debts are cleared.
“I haven’t been able to do anything for years because I’ve been trapped in this situation. This is what they do to people who stand up to them or who discover their errors—they just want people to give up or go away or die,” Maria said.
The case is part of what Maria describes as a longer pattern of errors by ANZ, including mortgages being tied to the wrong address and delayed title releases. She said her loan was also approved despite her failing a credit check, and was bundled under ANZ’s now-defunct “Breakfree” package, which was later found to have misled hundreds of thousands of customers. While ANZ was ordered to pay $211 million in compensation, Maria said her payout amounted to just 74 cents.
Maria also rejected signing a new mortgage document in 2019 without legal advice. ANZ had initially offered to cover her solicitor’s fees, then allegedly backtracked and offered only $1,000—far short of the $10,000 quote she received.
Her son, who once joined the case due to a $70,000 loan he made for home renovations, said the bank refused to participate in external mediation via Australian Financial Complaints Authority (AFCA). He questioned how many others might be affected by similar documentation errors.
In a 2021 ruling, Supreme Court Justice Glen Martin criticised ANZ’s claims as “bold and adventurous” but ultimately “misconceived.” The bank has since agreed to attend mediation on 30 April. Maria, however, said the ordeal continues to keep her up at night.
“I don’t sleep much at night. I’m up at 2am, 3am or 4am, thinking about this. It’s wrong, and it’s only about profits. There’s been failure every step of the way.”
ANZ declined to comment, citing policy on individual customer matters.
