Bluestone

For SA pensioners Norm and Barbara Menz, their $34k reverse mortgage somehow turned into a $107k debt nightmare.

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Following is the full statement that Today Tonight received from People's Choice Credit Union:

"People's Choice Credit Union can confirm Mr Norman and Mrs Barbara Menz applied for a $34,000 reverse mortgage loan with the financial services provider Bluestone at the (then) Australian Central Credit Union branch in Berri in January 2008.

The applicants were advised at the time by a qualified financial adviser who remains a professional and valued employee of People's Choice Credit Union in the Riverland.

We pride ourselves on our transparency and our commitment to ensuring our members fully understand the products they are considering. In the case of Mr and Mrs Menz, this included:

Recommending they obtain independent legal advice prior to entering into the loan (which they subsequently did);

Discussing alternative loan products with the applicants prior to their deciding to apply for the reverse mortgage product; and

Discussing a range of issues linked to reverse equity lending products with the applicants and encouraging them to consider these before deciding whether the product was suitable to their needs.

The matter was reviewed by the Financial Ombudsman Service (FOS) who ruled in favour of People's Choice Credit Union on 1 September 2015, determining that no obligations had been breached."