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BFCSA: NON BANK LENDERS: ASIC Place Consumers at Ongoing Risk of Losing Home. COSL Must Be Closed Down!

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Time to write Merry Christmas letters to Australian Securities and Investment Commission ("ASIC") and send me a copy please.  ASIC lie to Parliament about the number of complaints they receive.  We have the evidence to prove it.  

COSL NEEDS TO BE CLOSED IMMEDIATELY:  The EDR is simply a fraud in the way it presents itself.

All Consumers who borrow from NON BANK LENDERS and are Members of Credit Ombudsman's Service Limited (it has a P O Box and no street address) are at risk of CRIMINAL ACTIVITY from NON BANK LENDERS.

Treasurer Joe Hockey said last year on Channel 7: "I would not be dealing with a non bank lender - ever."  Yes Mr Treasurer, you and I know the non bank sector is riddled with fraud and fraught with RISK....but no-one Joe is really hammering warnings to the public: DO NOT DEAL WITH NON BANKS IN AUSTRALIA.

First thing is:   your Loan Application Form WILL BE tampered with after you signed and without your knowledge or consent.  This is not a mere "risk" Its a given!  Proven in our massive volume of files.

Secondly:  The ASIC licensed "Gatekeeper" COSL knows the fraud, will tell you they are there to handle disputes and immediately look for the fraud for FOUR reasons:  

1) They know fraud is 100% likely and internal to the Lender, due to the Lender Business Model and,

2) COSL will throw your case out after ten months on the excuse "its a FRAUD and we cannot handle fraud."  

3) Naturally, COSL also collect the $5000 blood money from the Lender Member.  


We urge consumers to take our warnings very seriously.  BANKS AND NON BANK LENDERS have been engaging in wide spread INTERNAL CONTROLLED FRAUD......meaning manufactured fraud using SERVICE CALCULATORS TO fudge income figures and exaggerate a host of other criteria, to make mortgage deals "fit."  However, here is the rub:

In a three year road test of COSL, not one case has been resolved in the consumers' advantage.  COSL favours it members in a very specific way.  ASIC licences COSL and COSL must be closed immediately for misleading consumers as to what it actually does.  By taking on the "dispute" we believe it receives $5000 per customer from their own member lender, to specifically investigate the case.  ASIC try to bleat we have the best consumer protection in the world.  Had BFCSA not materialized based upon consumer needs, no-one would have been the wiser and the circus would have continued.  

100% of all LAFs we have uncovered (and double the numbers from August last year) ALL Loan Application Forms ARE FRAUDULENT

Both FOS and COSL know this.  FOS will investigate Fraud.  COSL refuse.....................but Parliament has to act and find out why and then decide to close it down.

Only people in NSW had consumer protective laws since 1980.  BUT COSL DOES NOT USE THAT LAW.   Laws do not protect Consumers if you borrowed from a NON BANK LENDER.  No non bank lender has ever been prosecuted...............................and all LAFS discovered and examined to date have fudged or altered income details: eg average $50k income white-out used and handwritten by third party (credit assessors) show $180,000.  

That's a criminal offence, but ASIC can neither see it, acknowledge the facts, nor does ASIC prosecute non bank lenders.  ASIC knew this in 1999, but continued to create the illusion that these were safe mortgage lending practices.  By setting up Greg Medcraft's beloved Gatekeepers which four Chairmen of ASIC have defended, Consumers of mortgage products have been at risk.

However, if you are unlucky enough to have a Broker chose a NON BANK LENDER you will be shunted off to COSL who will bury you under a ton of manure. As one Broker said this week: " a client was entrenched in Bankruptcy, we knocked back the deal, but the Major Banks lent him the money anyway."  

Yes its still happening today.  You are at risk with a Major Bank of imprudent approval of loans, but if a non bank lender.....well the bodies are piling up.

If this is not corruption of our banking system - please tell me why we should accept this debacle:

HERE IS WHY:  To a Member who had a mortgage with a COSL Member named ADVANTEDGE (sub of NAB) (ex Challenger ex Packer):


We confirm that our Decision did respond to your claim of fraud, and that it was considered under the heading “Claim 1- Fraud” (paragraphs 42 to 46 of our Decision).

For reasons set out in Decision, we informed you that COSL is generally unable to consider an aspect of a complaint which relates to an allegation of fraud.  This is because COSL does not have the forensic capacity to investigate and establish fraud, since we are unable to:  1.    summon witnesses or administer oaths; and/or    2.    cross-examine witnesses on the statements they have given or the documents they have provided.

 Consequently, paragraphs 55 and 56 of our Decision, informed you that since we are unable to make a finding of fraud, our review of unjustness (where reasonable) could only proceed on the basis that the information recorded and submitted in and/or along with your loan application was a true and correct representation of your circumstances at the time, which was not tainted by fraud.


 So Ladies and Gentleman: If you are the victim of NON BANK LENDER FRAUD, where Advantedge and its mates are involved, your consumer claim will be relegated to the regulatory DUSTBIN.  And Advantedge (SIC) appear to have the regulatory advantage, aided by NAB lawyers, whereby Advantedge sends COSL a nice little sum of $5000.  We wish!

Time to get really upset with this inequitable system and time to demolish ASIC as the Consumer Protector.  For fourteen years ASIC has deliberately and maliciously placed consumers of banking products in harms way.  We call for the immediate resignation of RAJ VENGA...................................

If you have been thrown out by COSL....we want to gather everyone together under one umbrella and warn Parliament this is happening to consumers of mortgage products across the nation.

Please comment about your treatment by COSL to warn others

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  • doyla66
    doyla66 Saturday, 14 December 2013

    I phoned our COSL Case manager to ask why didn’t CRA rules apply to our loan as it was an asset lend after all and we are NSW residents and it matters NOT what the funds were used for, it was still an ASSET LEND and as I understand it there is no time limit for Fraud?.

    Firstly Case Manager tells me that she is a lawyer. The reason why, the Case manager explained to me over the phone was this - because our Low Doc loan was ruled an investment loan CRA NSW Section 6 did not apply. I said that decision is wrong as we did not have the income for this loan in the first place and that it was obviously an Asset Lend. I even sent COSL our spread sheets outlining our expenses and tax records as proof of lack of income at the time of the loan I said. What a waste of time and effort that proved to be in the end..

    COSL had proof of maladministration as we had a couple of Original wet ink LAF pages (which we photographed) to compare with what Latrobe Financial has supplied to us years later. We were never given any copies at the time by Broker who now states that all our files have been destroyed by him under instructions. He would not tell us by whom? Broker is now a bankrupt

    Case Manager still said no matter as our loan was an investment loan or words to that effect so CRA Section 6 did not apply.

    COSL Case manager also said that Section 16 of CRA NSW did not apply due to time limits.

    I said my information was proof of maladministration – these pictures are proof that information was added AFTER our signatures were obtained. We were not given the opportunity to read our full application and verify correct, as not all forms were given to us by the broker to read. We had never dealt with a Broker before and trusted him as the expert. Today we still do no have all our loan application forms as Latrobe says commercially sensitive.

    Our case was closed in favour of Latrobe Financial. (Latrobe loan had been paid out - a refinance in 2009)

    COSL Case manager then recommended I now deal directly with LaTrobe and to write to them with my photographic evidence of the Original LAFS we have.

    I sent Latrobe an invoice of our Losses - Latrobe CEO was not interested and just wrote back to say COSL had ruled case not found... and fobbed us off.

    COSL had all this information

    28/6/07 We signed LAF

    23/7/07 The date Latrobe Financial had stamped as receiving our LAF.

    10/7/07 Letter of offer was SIGNED by us.
    How come LaTrobe shows receipt of LAF was on 23/7/07.. 13 days after the Letter of offer?

    25/7/13 Loan draw down

    Very suspicious that the stamped date of receipt on fax copy from Broker to Latrobe was 13 days AFTER letter of offer was signed by us and ONLY 2 days after Latrobe said they received our LAF this loan was settled?

    Our COSL Complaint commenced in August 2012. FINAL COSL letter to us dated 15/4/13 states

    Extract of COSL response in letter to us......
    Inappropriate lending claim
    Relevant law
    Our consideration of the law applicable to this aspect of the complaint was set out in our Decision dated 15 March 2013. In summary, based on the available information, we concluded that:
    the complainants are unable to seek relief under the Uniform Consumer Credit Code (Code), as the loan was provided for an investment purpose, rather than a personal, household or domestic purpose;
    the limitation period in which the complainants could potentially seek relief under the Contracts Review Act 1980 (NSW) (CRA) has expired;
    although the credit provider was not compelled by law to verify the stated income of a borrower in a loan application, our investigation found that La Trobe did in fact take certain steps to verify the complainants capacity to repay the loan;
    (Comment - all Latrobe told COSL they did was check for an ABN and do a Veda credit check... nothing concerning our capacity to pay at all. We had an asset, our family home, should things go pear shaped.That was all that mattered to LaTrobe)
    there was no evidence which would support a conclusion that, in providing the loan to the complainant, La Trobe engaged in unconscionable conduct.

    Our review
    From their above submissions, the complainants appear to be claiming that the all of the required loan repayments due under the loan were made using credit advanced by La Trobe. However, this is inconsistent with previous information provided by the complainants. (Comment - COSL knew we were using Latrobe funds for interest payments..and knew of Peppers LOC which was drawn down a few days earlier of this Latrobe loan. Why use your own funds the Broker advised, borrow it. .. Latrobe even held back six months of the loan to pay them back the interest covering 6 months worth! It was there in black and white on the Loan transaction statements supplied to COSL. We were paying debt with debt)

    I HAD explained to Case Manager of how we were stitched up big time.

    And then COSL send out a customer satisfaction survey?? They have got to be kidding.

    COSL please read a few of the 382 Senate submissions and you will soon see how well COSL, FOS and ASIC are rated in the Consumers eyes. We consumers were definitely set up to fail.. and the regulatory bodies know it too.

  • doyla66
    doyla66 Sunday, 15 December 2013

    Stewart Jensen

    COSL's own rules give themselves the 'out' too not have to investigate any real issues. On one hand it says they will investigate infringements on laws. Then in their rules it says they will not investigate anything that will have a detrimental effect on their member? HUH? Then they come back and say they will not investigate fraud, when in the laws they say they uphold state certain things a lender cannot do, one of which is fraud? And it includes the definitions.
    COSL are toothless tigers.

  • doyla66
    doyla66 Monday, 16 December 2013

    Milton - Bendigo Banksters

    Be careful of the Bendigo Adelaide Bank and their various incarnations as they cover themselves with unconscionable mortgage contracts and tactics which the courts describe as "an abuse of process" which they use to crush their customers and apply penalties and fees equating to near 50% of the loan amount in under 12 months. That is how they are so profitable, all the time hidden under the guise of a 'Community Bank'. Watch the Media, Parliament and the Net for updates on their latest extortive tactics.

    In the case of the Bendigo "Don't" .. Believe in your bank".

  • doyla66
    doyla66 Monday, 16 December 2013


    Funny........ you are allocated a case manager at COSL or FOS......but they NEVER answer the phone, if you leave a message, they NEVER return your calls. BUT if you miss your mortgage payments........ the come down on you like a dog without a bone.............
    spread the word
    tell all your friends & family...........this is a MUST
    WE ARE NOT ALONE......there is MILLIONS of us.......
    Families are trouble, our KIDS futures are in great threat. How will our children build a bright future with all this going on?
    there would families in your street in trouble & trying to figure out WHY ?????
    they wont know if we dont tell them, they wont get help if we dont get this ISSUE out there.
    We only need ONE station to broadcast this.........JUST ONE
    lets use all the technologies of TODAY.
    SMS, Facebook, Emails etc..........this BLOG is the KEY
    Denise is right.............WE MUST USE what we have be given to bring the BIG BOYS into line & send them all running!!!!!!
    all the way to the BANK

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