Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook

facebook3           facebook2 


What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


Articles View Hits

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

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.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: Australian Broker News Readers hold Banks to account on Clawbacks

Posted by on in Bankers A Law Unto Themselves
  • Font size: Larger Smaller
  • Hits: 2220
  • Print

Hot topic of the week: Clawbacks

    Australian Broker News
by AB | 24 Mar 2014
Friday’s article on the unfairness of clawbacks attracted a huge amount of commentary from you in a short space of time, signalling intensity of broker feeling and highlighting the importance the industry should be placing on addressing the issue.

Many interesting and constructive opinions were expressed; with the overwhelming response being clawbacks are unjust punishments on brokers for something they largely have no control over.

“The banks simply eat brokers to the bones if they could,” said VIC Broker. “Of course it is UNFAIR! Brokers are only ones who suffer in the end.”

Anne questioned what other professions apart from mortgage broking give a free marketing, sales and process operation. “It is manifestly unjust and would be deemed immoral for a large industry to expect unpaid workers to share the risk of what should be the cost of the lenders doing business.”

Brett Perth said: “How professional are we when the lenders don’t see the value in our service?”

Some brokers shared their own stories with clawbacks. Not happy wrote: “I had a clawback last year because the client had an accident and got a payout, and a clawback yesterday due to a forced sale after a death. Why is it I have to wear it?”

A few commentators thought there were ways to avoid clawbacks.

Both Broker and Tim H have built a clawback clause into their broking contracts which they highlight to clients – and they say the clients have no issue paying up if need be.

Rex suggested avoiding clawbacks by converting to fee-for-service, working for the lender directly and exclusively to get a salary, or simply factoring the potential for clawback into the business.

Some brokers mentioned lenders who do not claw back - Pepper, LaTrobe and MKM, according to Jenine.  BankWest was thought to have a fair system with a clawback period of 18 months which reduces by 1/18th each month during this period, according to Tim HHowever, Working4Free warned to be wary of "clawback by stealth" by BankWest.

There were some suggestions of how to fight clawbacks, such as petitioning aggregators, industry bodies and lenders.

Michael eberand threatened to cancel his 15 year MFAA membership unless the association supports the cause with policy and strategy.

Denise Brailey BFCSA (Inc) suggested everyone write to the bankers and tell them 100% claw backs are unacceptable as the work was generated in the first place “and each part of your job has a value”.

Another idea, expressed by OldBroker and Patrick McMenamin was for brokers to form a class action.

“This is a question for the courts and MFAA/FBAA ought to support their members and facilitate arrangements by aggregators/brokers to jointly obtain council advice as to the prospects of a class action. If a class action has ‘legs’ then such action could be funded on a contributory basis by aggregators/brokers,” McMenamin wrote.

The comment board is still open so feel free to leave your opinion – and watch this space for follow-up articles over the next week.

Thanks to all our commentators this week! Read Clawbacks ‘not okay’, says broker Hot topic of the week: Clawbacks
Last modified on
Rate this blog entry:


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Thursday, 28 January 2021