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How would you have acted differently? Are you saying you had the money to meet the payments but preferred not to? They may have been right about their own openness to more borrowings, but they can't speak to the judgement of other lenders, insurers or a broker's view given their obligations...

If your deal with Adelaide was also insured with Genworth, it is likely they would have advised them/sought their approval for the payment holiday. They would not have lodged a default on your Veda report. Genworth's issue will be that you were unable to make payments for 4 of the last 12...