BOQ forgives additional franchise loans

Bank of Queensland is providing additional debt forgiveness to owner operators of select franchised branches of the bank, the Financial Review reported. The number of borrowers receiving debt forgiveness and the extent of the forgiveness is not clear from the article.

The newspaper also reported that BOQ was waiving fees normally charged to new owners of existing franchised branches, a departure from prior practice.

BOQ has previously written off some loans connected with its branch expansion in New South Wales several years ago. The bank has said that it considers that it is fully provided for those loans.

The bank rationalised its network in New South Wales a couple of years ago, shutting some outlets and merging others.

Legal action being brought by some disaffected former operators of franchised branches is now being financed by the litigation funding firm IMF (Australia).

The bank is waiting for a ruling in the trial in one case heard by the Federal Court and for which hearings finished some months ago.