House repossessed after bank forged signatures, couple claim

A MAN whose home was repossessed by the Commonwealth Bank (CBA) later discovered his signature had been forged and his salary falsely inflated on loan documents, the Victorian Supreme Court has heard.

Jim and Debbie Barker said they were now financially ruined and asked the court to set aside a default judgement which ordered them to pay the CBA's costs.

Setting aside the costs would to allow them to seek compensation from the CBA.

They said the bank seized their home and other properties totalling up to $4 million in 2007 after they were unable to pay an investment loan for a development on Phillip Island.

Ms Barker said it took her more than four years of persistent requests to obtain the loan documents, at which time she discovered money had been drawn down without their consent, the loan amount increased from $1 million to $1.5 million, her husband's signature had been forged and his salary documented at $343,000 a year despite him earning no more than $80,000 per annum.

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