The situation: A farmer has been in arrears with a small lender regarding a loan for a tractor. The parties had tried to sort out the issue for some time, with the farmer agreeing to a payment plan in order to get up to date with the payments. However after more missed payments by the farmer, the lender (creditor) decided that the matter required mediation.
The VSBC: The lender wrote to the farmer asking him to participate in mediation, to which the farmer agreed. After receiving the paperwork from the Department of Economic Development, Jobs, Transport and Resources, the VSBC arranged a mediation date in a regional centre close to the farmer’s property.
The resolution: Between the time that mediation was arranged and the mediation date, the farmer managed to sell a property that had been on the market for some time, and contacted the creditor offering to make arrangements to pay off the machinery loan in full. The creditor was happy with this and the matter was settled without the need for mediation.