Which of the following describes what a lender can do during a MABS engagement?

• A. Debt settlement arrangements.
• B. Bankruptcy.
• C. Impose additional charges on the mortgage.
• D. Lenders will not commence and will suspend any legal action.

Answer: (D)

During a MABS engagement, the lender pauses active enforcement to support the debt-resolution process. This protective pause means no new legal actions are started and any ongoing actions are suspended, giving the borrower time to work with MABS on budgeting and a workable repayment plan without the pressure of court or creditor proceedings. This approach helps preserve the chance of reaching a sustainable solution rather than escalating enforcement while advice and arrangements are being discussed.

Other options don’t fit as well because debt settlement arrangements are negotiations that require agreement with creditors and aren’t automatic actions the lender takes simply because MABS is involved; bankruptcy is a formal step the borrower would consider with advice, not something a lender typically initiates during MABS engagement; and imposing additional charges would worsen the borrower’s position and undermine the purpose of the engagement, which is to stabilize and resolve the debt situation.