WESTPAC has been accused of bankrupting a 98-year-old woman after lending her more than $400,000 to invest in property.

At a Senate hearing today, Westpac faced claims that a Gold Coast bank manager signed up at least four elderly people for loans worth up to $800,000 promising them a return of 15 per cent, reports The Australian.



One 98-year old nursing home resident, who is now 101 years old, was lent $440,000 through a 30-year loan investment to invest in a Queensland property developer that collapsed and left her broke.



It is understood the “rogue” branch manager is no longer with Westpac.



National senator Williams said the case of the 98-year-old woman should be referred to the police.



"I have heard a number of very sad stories," Senator Williams told the hearing. "I'm very concerned about these low-doc loans."



"This is a case of a bank manager talking people into investing in companies that fell over," he said.



"I'm aware in this country and around the world we have rogues, I'm aware you are a good bank and you can't stand behind every bank manager, but this is a case of a bank manager who filled in the forms for a 98-year-old woman."



Read the full story at The Australian. (Subscription)





Originally published as Westpac 'lent' $440,000 to 98-year-old