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Yes it wouldn't hurt to give it a go.

This would be like trying to re-attached a severed leg. Major surgery.

She should send it to the special section invovled with complains. They will respond if she gets it to the right section - details are on their website.

learn from their mistake. And tell others so they don't make the same mistake. I don't think they would have any legal recourse against the bank, but they should check with a litigation lawyer. Maybe complain to the bank and then credit ombudsman.

ANZ are not really the problem and the damage has been done, moving now won't change things. $250,000 x 5% = $12,500 per year in lost tax deductions. This may amount to $5,875 cash in their pocket each year. Imagine if you paid an extra $5,875 pa into the new PPOR loan and how much faster...

Yes def cross coll. Since the loans were crossed they would need a new valuation and assessment of serviceability to release mortgage. With one not working they would have had to reduce the remaining loan balance to the point of servicing. These poor people have no paid out a tax...