BFCSA Blog

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

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From Macrobusiness  10/10/2013 At the AFR this morning there are two stories about the growth in high LVR lending. One from Robert Harley: Martin North, the principal of boutique research consultancy, Digital Finance Analytics, also notes that high LVRs can depress the economy. When interest rates inevitably rise, borrowers, geared to the maximum, stop discretionary spending. The result, as happened in Western Sydney last decade, can be years of stagnation. ...North, who has long followed the mortgage industry, has no doubt the banks have become more aggressive. The non-conforming lenders, like Liberty Financial, Pepper Home Loans and Bluestone Mortgages are back lending aggressively and the big banks are being forced to follow. Read the rest, about APRA and especially the comments! http://www.macrobusiness.com.au/2013/10/are-high-lvr-loans-shrinking-or-growing/...
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Posted by on in Consumer Warnings
Hi Members, What does it mean if the lender has admitted that they don't have a Loan Application Form (LAF) on file? It appears that our Lender cannot produce a LAF because they don't have one on file and they have admitted to it.  It looks like they used a statement of finanical position to assess our loan.  Which could not & should not consitute a LAF. I would think without a correct LAF then the loan can not be validated. Any comments appreciated.  Thanks. Gina....
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  • doyla66
    doyla66 says #
    The bank have admitted to having no LAF on file & I would guess they may not as we had a letter of offer in our hands 2 days after
  • doyla66
    doyla66 says #
    Hi all & thanks for your responses... Just to clarify there is no LAF handwritten or electronic for our loan, the bank relied on
  • doyla66
    doyla66 says #
    Yes, That is what I am trying to get at. The Electronic version is a complete sham. Altered to suit the needs of customer at that
  • doyla66
    doyla66 says #
    Is the bank your regular bank and have you had loans before from same? If so then no identification would be necessary. If FOS ar
  • doyla66
    doyla66 says #
    Hello GinaB can you confirm if the loan is a Broker initiated lend then Bank Financed, if so it has to go through the proper chann
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 What is going on? A valuation 'expert' has spoken up, suggesting the changes to the industry may need to be even more far reaching: Why do some valuers get it so wrong?  by Patrick Bright, Thurs, 26 Sept 2013: I was speaking with a finance broker last week and he was telling me a story about one of his clients who purchased a property for $661,000. Ok, so there’s nothing unusual about that but here's where it gets interesting.The broker knew the area as he lived close by and thought that $661,000 was a lot for a two-bed apt in that location so it must be something special. As per standard practice the bank ordered a valuation which came in at $661,000 (purchase price). This surprised him as he was sure the val' was going to come in well below that figure. In sharing the story with a co-worker, they discovered that a...
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  • doyla66
    doyla66 says #
    I'm sure you keep a list of those documents requested of the lender via FOS. Same for the questions asked and whether they have be
  • doyla66
    doyla66 says #
    It is my understanding that from the onset of our FOS lodged dispute ALL letters, files, documents are forwarded to the Lender in
  • doyla66
    doyla66 says #
    Andy, I am in total agreeance with your comment re:'Fos legal counsel blatantly 'err' to support the banksters" It is so obvious
  • doyla66
    doyla66 says #
    I agree, fos is empowered to fsp's to hand over documents, but kid the papers sometimes it does, sometimes it does not...what is t
  • doyla66
    doyla66 says #
    Many years ago someone in real estate told me "don't take any notice of bank valuations. They're invariably wrong." I took that l
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By Vern Gowdie  Wednesday, 21st August 2013  Photo - homeless family ‘CBA’s record result delivers Narev $7.8m pay cheque’ said a headline in the Business section of The Australian yesterday. According to the article, the CEO’s salary package rose to $2.1m compared to last year. Nice work. Narev is not an isolated case; bankers around the world are reaping the benefits of stabilised markets courtesy of central banker intervention.  Don’t get me wrong; if someone genuinely delivers they should share in the spoils. But what irks me is the banking sector (globally) is a protected species. As we witnessed in the GFC, the financial sector is backstopped by taxpayer money. Success is theirs and failure is ours. Globally the financial sector has grown like topsy over the past two decades and remuneration has followed suit. But has this growth added any real value to the economy? Paul Volcker (Chairman of the...
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Following the Money Wednesday, 21st August 2013 – Buderim, Queensland   By Nick Hubble The following are extracts from Nick Hubble's newsletter relating to Banking --"Australia’s corporate behemoths are publishing results left right and centre. It’s tough to know what to make of the deluge of information, and there’s a lot of shuffling going on. But a few clear trends are emerging...." --"It’s not just the mining industry that’s looking shaky. --Suncorp Group’s statutory net profit fell 32% after making a $632 million loss on the sale of its bad loans to Goldman Sachs. Why would a bank take a $600 million plus hit on loans in a healthy mortgage market? It wouldn’t. --Meanwhile, QBE upped its mortgage insurance premiums big time. The reason for the 9% increase is fear. The company is forecasting ‘volatility’ in the housing market in the next few years. And we know what can happen to financial...
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Extract from  13 Aug 2013 The Gold Coast Bulletin JENNY ROGERS This email address is being protected from spambots. You need JavaScript enabled to view it. Business article about "Nimble" ex "Cash Doctors" ... "Nimble, whose loans are done completely online, uses machine learning algorithms to assess applications for loans of up to $1200, reviewing credit data history and capacity to pay in five minutes. Customers are given an answer within minutes. With its focus on only lending to qualified borrowers, Nimble said it’s platform sought to eliminate defaults, currently approving one in six applicants. http://www.pressdisplay.com/pressdisplay/viewer.aspx   and from the UK Drunk people being granted payday loans, charity claims   By Nicole Le Marie Tuesday 28 May 2013 12:01 am  Payday loans have been given to children, mental health patients and people who were drunk when they applied, it has been claimed. The irresponsible payments are being made by companies which often drain borrowers’ bank accounts ‘without any warning’ if they default, Citizens Advice revealed. The...
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Gold Coast Bulletin Page 27 Business by Quentin Tod 31-7-13  Investors in the stricken Equititrust Income Fund have been given a double dose of bad news - the amount of money they could get back has fallen and any interim payout could be delayed. Receiver David Whyte, in his latest report to investors, says the estimated return has fallen to between 11c and 13c in the dollar.  The previous estimate was from 12c to 16 in the dollar.  Mr Whyte says the fall in the return is the result of land tax ad rates having to be paid on unsold properties within the fund and continuing operating costs. The sell-off of the five fund properties, including the Wirrina golf resort and hotel in South Australia, is yet to be completed. The four largest properties are expected to yield around $20 million.  Mr Whyte says there is doubt over whether the sale of one of...
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  • doyla66
    doyla66 says #
    The McIvor's have a lot of blood on their hands
  • doyla66
    doyla66 says #
    A charming lot, the McIvors! Definitely Hall of Shame material - it's a family affair I'd suggest a change to the Australian Corp
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COLLAPSED Gold Coast funds manager LM Investment Management may have traded while insolvent and some of its directors may be guilty of breaching multiple sections of the Corporations Act, the company's administrators say.  DB:  So why has ASIC not started rounding them up? ..." LM, headed by Gold Coaster Peter Drake, had more than $3 billion in assets, including its flagship Maddison Estate at Pimpama, and promoted its products through financial advisers in 70 countries before administrators were called in. The move to liquidate the company comes amid revelations that financial advisers who promoted LMIM's now frozen funds may collect millions in commission before their clients receive a return..." "Media reports said the latest administrators report shows $10 million in commissions are subject to claims by financial advisers but the administrators have not deemed the investors to be creditors Unitholders have been told they may not recover a cent of the $234 million...
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  • doyla66
    doyla66 says #
    Thanks for this post, Change. If investors aren't creditors, what are they?? Where's ASIC while this is going on? I read a detai
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Struggling Aussies increasingly turning to debt agreements By Mackenzie McCarty | 18/01/2013 8:15:00 AM | 5 comments  WWW.BROKERNEWS.COM.AU Australians experiencing severe debt problems are increasingly turning to debt agreements over bankruptcy, with a recorded increase of 68% in debt agreement numbers since 2007. Insolvency and Trustee Service Australia (ITSA) figures show bankruptcies declined 20% between January 1, 2007 and December 31, 2012, with 150,353 bankruptcies recorded during this period. During the same time frame, however, there were 49,034 new debt agreements made, representing a 68% increase. Reforms to the Bankruptcy Act in 2007 in the form of the Bankruptcy Legislation Amendment (Debt Agreements) Act 2007, aimed to improve the operation of the debt agreement regime. Attorney-General Nicola Roxon says debt agreements provide better outcomes for someone’s financial circumstances, and may allow those people in debt the chance to save their home.   “Debt agreements in many cases can be the smarter way forward, especially as bankruptcy...
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  • doyla66
    doyla66 says #
    BE WARY OF THESE PROPOSALS: THIS SO CALLED EXPERT we disagree with IS SAYING: Those people who can’t manage their finances would
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Dear members If the people sending hate mail have a genuine beef with the banking and financial industry, as we all do then I sympathize but to go it alone wont work. To ask for donations to support such tirades sends warning bells ringing.  No member will fall for that.  These are seemingly damaged people that threaten in such a demeaning way. What ever disagreements these two or three people might have with Denise and bfcsa, history has taught us that in times of crisis you need strong decisive leaders who sometimes have to make the hard calls and decisions, in Denise we have that. I could go on and on but I do not wish to play games on other peoples terms.   Thanks Neil T....
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  • doyla66
    doyla66 says #
    I agree, stay together bfcsa members, don't let red herrings distract us from our purpose-go Denise and all members as one strong
  • doyla66
    doyla66 says #
    The 80/20 principal - the majority of problems are caused by the minority. To succeed in our fight against the banks we need to
  • doyla66
    doyla66 says #
    Agree, Wendee. Stay "on purpose" and avoid the distractions/detractors. According to Ghandi, we're doing something really right lo
  • doyla66
    doyla66 says #
    Yes Neil, bank$ters enjoy the to-divide-and-rule-concept, seeking to break-up bfcsa existing power structures with an overarching
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Wednesday, 8th May 2013 Melbourne, AustraliaBy Greg Canavan ...the growth you have when you don't have any growth..."  Last week three banks reported full-year or half-yearly earnings. Because the words 'dividend' and 'increase' were in the press releases, the market went nuts. But if you care to look at the details, the results weren't anything to get excited about. I call it 'Claytons Growth'.  Check it out:  ANZ reported full year results to 31 March. On a cash basis year-on-year revenues increased 4%. But over the second half, there was no revenue growth at all. Lower costs saved the day, with operating expenses down 2% and 8% over the year and second half respectively.  So, in the last six months ANZ achieved an 8% increase in cash profit based on 0% income growth, an 8% decline in expenses, and a 13% decline in bad debt provisioning. You gotta  take what you...
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  • doyla66
    doyla66 says #
    Thanks for this post, Arree. I'd like more information on "bad debts" and "impairment funding" with a detailed breakdown if anyon
  • doyla66
    doyla66 says #
    Bank cutting costs = "sacking Aussie staff " as an option. Again it's the every day Aussie who ends up the loser. As for the
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By Matt Wordsworth Updated Tue Apr 2, 2013 10:49pm AEDT Questions are being raised as to why Australia's most successful so-called wealth generator is not being investigated, after his employees lifted the lid on hidden charges and a trail of failed companies. Peter Spann tells rooms full of mum and dad investors how to make their millions and that he is the rags-to-riches story they can follow. Financial advice has rocketed Mr Spann from struggling supermarket employee to multi-millionaire. A ticket to his 2011 seminar in Sydney cost almost $4,000, although a second ticket was thrown in for free. But former investors and employees have serious concerns about Mr Spann's investments. Peter Garland and his wife Myrna Sharplin first came into contact with Mr Spann through a seminar. They invested $75,000 of their superannuation nest egg through his companies Freeman Fox and Excela before the global financial crisis hit. When the...
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  • doyla66
    doyla66 says #
    I attended a Freeman fox - Peter Spann seminar in about 2000. The focus at that stage was really he'd tell you what to do in prop
  • doyla66
    doyla66 says #
    Matt, I attended the same seminar and found it very helpful. I then went on to do the options trading training and tried my hand
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Posted by on in Consumer Warnings
An extract from Nick Hubble's newsletters. " It's worth noting that Australia itself is in the firing line. Countries like Cyprus and Malta got into trouble because of the size of their banks relative to the economy. And Australia is well within the danger zone, with banks assets at 350% of GDP. That's about the same as Spain and Portugal. Source: Financial Times Given that governments can get into financial trouble because they need to bail out banks, our low government debt to GDP might not spare us from serious cuts in government spending like in Cyprus. 1. Fractional reserve banking is unstable. I’ve been banging on about this one for years, much to the dismay of readers. But Cyprus just demonstrated nicely that the issue really does matter. In short, banks only keep a small proportion of the cash you ‘deposit’. They lend out the rest. If enough loans fail...
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  • doyla66
    doyla66 says #
    Dear Denise/Contributors, For an economy to thrive and one that has a spine, (Germany is probably the best example), needs more t
  • doyla66
    doyla66 says #
    I think Nick Hubble may have erred when he said that Malta, like Cyprus, got into trouble. Malta is in no trouble whatsoever. In f
  • doyla66
    doyla66 says #
    AngusSecurities NEXT to FALL: S&P cuts rating of Adelaide debenture issuer Angas Securities; 1/3 of its loans were "in arrears"(Ja
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It’s Rigged — Exit Plan Required By now, I think you’ve got the message about the financial system. But if you haven’t, let me repeat it: governments and bureaucrats have rigged the financial system against you. They want to push you into slavery, servitude and obedience to the government and banks. That’s why I’m a big fan of the work Nick Hubble is doing to highlight the devious tactics used by some banks and lenders to get people to borrow more money. But as the raids on savings show you: don’t be too smug if you’re a saver rather than a borrower, because as I’ve proven, governments are after your money too. They don’t want you to save for your own future. They want to take your savings so they can force you into servitude and obedience. And if you don’t understand that, then you deserve to lose your savings to money-grabbing bureaucrats...
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  • doyla66
    doyla66 says #
    It proves how ruthless the banks are and always have been but like many, we were not aware of this until we became embroiled in th
  • doyla66
    doyla66 says #
    Wish I had some cash for Gold. C'mon RAMS WBC extinguish our mortgage now... you know you committed fraud with our documentation
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Three Banking and Retirement Scams To Look Out For Written on 13 March 2013 by Nick Hubble Let us tell you about three banking and retirement scams the Australian government is getting ready to inflict on you. Two are already in operation and a third is in the works. Australian savers, investors and retirees are about to be slapped about by our country’s two biggest institutions. The banks and the Australian government are both going to take a swipe at your savings. And there’s even more swiping to come. Below, you’ll find out exactly how this is going to happen, and what you can do about it. Scam Number 1 – The Bank Account Scam You expect the government to steal some of your income in income taxes. And you know it takes 10% of your money when you spend it too. When you invest and when your business makes money,...
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  • doyla66
    doyla66 says #
    Collusion, graft, is the name of the game. All financial institutions are in there up to their necks. Profit and greed has gotten
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Banks in NZ 'strongly rejected' OBR By James Weir Last updated 05:00 21/3/13   Banks in New Zealand "strongly rejected" earlier attempts by the Reserve Bank to bring in a new policy that would mean a "haircut" or partial loss on all deposits if a bank failed, an industry source says. The source says former Reserve Bank governor Alan Bollard was the driving force in the move to get "Open Bank Resolution" brought in during his time at the central bank but was earlier turned back by the big banks.   The policy had only been "crystallised" in the past year or so and is due to come into force at the end of June. The Reserve Bank had pushed ahead because of the fear the Government could bear the huge cost of a bailout if a bank failed, though that is seen as a remote chance.  New Zealand banks are among the best...
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  By Mark Thompson @CNNMoney March 17, 2013: 3:38 PM ET   Cypriots are rushing to their banks to withdraw cash after a bailout of Cyprus imposed a hefty tax on depositors. LONDON (CNNMoney) A planned tax on Cyprus bank depositors as part of a European Union bailout is sending people rushing to ATMs to withdraw cash. The EU has required a one-time tax of 9.9% tax on deposits of more than €100,000 starting Tuesday, as part of a bailout of the tiny nation. On Saturday, the EU unveiled a €10 billion plan to rescue Cyprus' outsized banking sector and avoid a default. It was the first time that the EU has insisted on such terms for bank depositors as part of a bailout. The EU's bailouts other nations in the last three years, such as Greece and Portugal, have usually been accompanied with strict budget restrictions and led to...
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  • doyla66
    doyla66 says #
    Well perhaps we need to put this into the modern economic jargon so the fish can understand. Who cares about the Russian Black Mar
  • doyla66
    doyla66 says #
    CH - you say "Sounds like a reasonable approach to me" and WHO allowed the Russian Black Market to carry on and do business in the
  • doyla66
    doyla66 says #
    Actually, this is not protecting the "banksters" - they have been wiped out in their entirety. This is about protecting the broad
  • Denise
    Denise says #
    Cypriots are being hit with Bankster driven big interest only loans and yet Government is taking 10% of their "capital savings" as
  • doyla66
    doyla66 says #
    A type of dictatorship which is crucifying the poor and looking after the rich. It's the people's money not the banks - This is a
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Posted by on in Consumer Warnings
The Australian today - Anthony Klan - (continuing the article) .....Mortgage  funds raise money from ordinary investors and on lend that money at higher interest rates to borrowers, such as property developers, and profit from the difference...... A review of the accounts and disclosures of W& D Finance shows the company has made $90.3m in mortgage loans, where borrowers have provided property as security for the loan. Of those loans, almost $15 MILLION are in arrears or W&D has been forced to repossess the properties used as security. The accounts show W&D has repossessed properties again $9.64 MILLION of failed loans, and has further loans in arrears of $4.07m. Whether investors lose money will depend on the fund's ability to sell those properties at, or above, the outstanding loan amounts. W&D finance managing director Phillip Cunningham did not return repeated calls from the Australian yesterday..... Ed:  Where are you Phil?  These...
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  • doyla66
    doyla66 says #
    Industry self-regulation is based on the assumption that all subscribers to that "code of practice" are also operating within that
  • doyla66
    doyla66 says #
    How much is the Australian Government committing to the operation and expansion of FOS, COSL, ASIC to accommodate the growing numb
  • doyla66
    doyla66 says #
    It is a dangerous road to go down and so sad that money is the main focus of our generation. Since this debacle, I have learned to
  • doyla66
    doyla66 says #
    Yep it is still happening and will continue to happen unless someone is "Bold and Beautiful" enough to take ownership of overseein
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Posted by on in Consumer Warnings
The Australian today - Anthony Klan.........Despite the string of recent collapses of debenture funds -in the past six months alone taking more than $800 million - many unsophisticated investors are continuing to invest in the high-risk products. Webster Dolilta Finance or W&D Finance, a debenture fund based in Ballarat, Victoria, directly targets retirees and increased it's size by almost a quater last financial year. Despite the malaise in the sector, W&D investors put an additional $20m in the fund in the year to June, taking total investments to $111m....... Banksia, Storm etc all over again????  ...
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  • doyla66
    doyla66 says #
    The Provic member companies presently hold in excess of $666 Million of investors’ funds - and in excess of $512 Million lent on t
  • doyla66
    doyla66 says #
    W&D Finance is a member of the Provincial Finance Group Inc. (Provic), an industry association representing ]ten independent note
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So, What Will Our 21st century Debt Jubilee Look Like? by Jeff Nielson 02/19/13 – 08:00 AM EST .........” Hitting the reset button. Wiping the slate clean by burning all (?) of the bad debts created by these bankers and politicians. It is a regular, recurring event throughout history. Whenever one or more governments sink to such a level of political/moral/economic corruption, debt-default is usually one of their lesser sins. So what will our 21st century Debt Jubilee look like? With history's most-corrupt governments, expect the most-corrupt "solution." The debts of our governments, the big banks, and the wealthiest Oligarchs will be totally erased. We will be told they are doing this to "save us" from drowning in their (reckless/fraudulent) debts.  However, the little people will face a somewhat different future. Their debts will be maintained at 100-cents-on-the-dollar. The bankers, politicians and Oligarchs (via their corporate media) will tell us that...
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