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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.


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BFCSA: Bank Computer Fraud Engineered by the Lenders: Service Calculators geared to fudge Income Figures. A bit like the LIBOR PROBLEM

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Lenders, including the Major Banks dreamed up a dastardly weapon against consumers known as THE SERVICEABILITY CALCULATOR.   The clever little lenders, on salaries and bonuses of $4 million per year, wanted 20,000 "agents" to use their tools to fudge income figures.  How did they manage to find 20,000 dishonest people to become brokers and earn commissions from a  grand scale fraud?  Truth is the possibility of finding 20,000 dishonest people was a little ambitious.  No, this plan was subtle: "how to have 000's of Bank Officers (BDM's) and 000's of brokers, use the Service Calculator Tool, and allow the tool to create futuristic income, yet at the same time convince bank staff and its agencies that "all of the above was within the law."

Brokers ask: "what is your income please?"  Little old lady ("ARIP") - that's bank jargon for Asset Rich Income Poor......the bank taught TARGET MARKET.....she quietly answers $22,000 per year. 

The Broker is then taught to type in the actual income in top left hand corner of screen and hey presto....the Lenders' Secret Weapon whirls around and "calculates" her future income will be (we wish) $120,000.  Broker is then taught to write the new englobo figure (one size fits all calculation) on the hand written LAF....that way the new fudged computer figure is written in by the Broker.

Credit Assessor receives the FAXED application and thinks - my calculator states her income to be $145,000 and then used white out to change the figure on the the CA's handwriting.  All the while the Lenders knew the two Serviceability Calculators were the same program but GEARED by Bank Execs to operate slightly differently as to the tax incentives etc.......................

Bank/Lender then writes a letter to the hapless lady whom the tax incentive is invalid in any case..................."Congrats you loan you asked for at $250,000 has been granted at $320,000....happy landings."

ASIC are trying to tell Parliament - we stopped this practice after 1 July 2010 as we have new laws.  What nonsense!

1) New Laws do not stop bad behaviour by Bank executives on $4 million plus a year....Enforcement of Law does achieve that aim.

2) New Laws did nothing to kerb toxic loans because "Mortgage Lending is a profitable business for banks.'

The game is still being played.  Our surveys show 36% of all loans relating to our members are written by bank staff and NO BROKER IN SIGHT.

Only 3% of brokers are rogues according to ASIC and we agree.

So the question must be asked in Parliament: "How is it that 100% of all loans we have surveyed are UNCLEAN?"

ASIC state that under new laws the instance of toxic loans has dropped.  No that is false: Over 30 members have complained their loans are toxic and were written within the past three years, POST THE ASIC magic date of 1 July 2010.

The loans are being written in such a way as to cover-up from implosion for six years but GOLLY GOSH we have bank leaks as refinancing of buffer monies dries up.  OOPs!  Meaning the loans were full steam ahead even in FULL DOCS (18%) but they are unravelling at the 18 month time frame.  GULP!  I can see Bank Executives now:  "Blimey, lets jump ship now................................take the booty and run................."


Did they tell consumers about the dreaded SERVICE CALCULATOR capable of fudging figures on every loan?  Nope.

Did ASIC warn consumers: You 3 page LAF is really 11 pages and you the valued bank customer are being done over?  Nope.

Did ASIC help you recover your copy of your bank files that contain your signature and ought to have been given to you at point of signing? Nope.

Did ASIC tell you the consumer: We told our parents to have nothing to do with Lenders and why?  Nope

Did ASIC warn you that this has been going on since 1996, and 000's of parents have already lost their homes?  Nope

Did ASIC KNOW all of this during the past decade?  Yes indeed!

Is it any wonder that ASIC is finally being grilled by the Senators in Parliament under their own Inquiry into the Performance of ASIC.............the first time in Australia's History.

Now we also have the ROOTS AND BRANCH affair - a supposedly INDEPENDENT INQUIRY into our banking and finance system and GUESS WHAT?  The Prime Minister and Treasurer are on damage control and have appointed ex Banker David Murray to head the Inquiry with gallons of whitewash.

As the UK Police from Scotland Yard found out after having a good look at this problem:  "The Bankers used gallons of white-out all over the Loan Application Forms, after the innocent borrowers signed up....."

IS OUR BANKING SYSTEM A CRIME SCENE? Of course it is.....................documents do not lie but Bankers and corrupt Mates do!  

And where perchance is our dedicated Corporate Cop Chief Medcraft right now after saying he can find no evidence..........?  

Most likely you will find him at the IOSCO Sportsmen's Club in New York!!!!  

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  • doyla66
    doyla66 Monday, 25 November 2013

    Do we have anyone honest we can turn to

    It seems to be that there is not one honest person in either the political arena or regulatory authority or for that matter the one protector we most rely on our Local and Federal Police. We the poor old victim have been left to fend for ourselves if not for the help and direction of Denise Brailey I feel even more of us would have perished into the mortgage graveyard. Where is the help to come from our regulators are in possession of thousands of documents that clearly show the malfeasance but none of us win our cases (or very few do). The Senate has in its possession more information related to banking malpractice than you could read in a year but that investigation does not begin until next March. Our newly elected treasurer Mr Hockey promised us a Root and Branch Investigation into the practices of our Banking and Finance Industries, so he was aware not all was as it seemed. With all these thing happening around one (plus associated industries) industry it must be obvious that something is not quite right. I believe that all questionable mortgages or any that are being investigated should be frozen from the time they are put into question, should the mortgage be found to be above board the mortgage resumes and all payments obliged to be payable be again added to the principal and interest be payable at the original mortgage rate. Of course on the other side of the coin if the mortgage be found to be Fraudulent (and lets face it many are that's why we are making the complaint) all costs should be repaid by the lender including the principal declared to be "zero" all costs returned (eg establishment, fees, charges any late payment or other trumped up fees that banks apply) all Interest returned and any Personal funds used to prop up the loan be repaid in full. I then believe the Bank in question should repay the customer the PRINCIPAL INTERST (so it would be not the principal but the interest equivalent of) amount of the loan x the current interest rate as compensation for the pain and suffering etc. So the mathematical equation would be this EG: Say your original loan be $500,000 and your then at the time of the loan being established was 7.75% and you had been repaying that loan until it was found to be toxic, it would be $500,000 @ 7.75% cumulative compounding interest X 4 years that figure would then be paid to the victim as compensation after the original loan has been dissolved and the victim returned to the situation they would have been in had they not met their Bank. I firmly believe something of this nature if not this exact equation to be used to make incentive for Banks etc to keep honesty in their lending, as it stands at present the Banks are only repaying the victim what they have already spent and returning them to the position they were previously in that is little deterant. I do not believe there should be a cap on any claim as it is at present with FOS AND COSL it should be what it is is what it is. And just in finishing I have grave concerns of just how above board any investigation into an industry by a previous executive of that industry is going to be Mr Hockey your own credibility stands to be questioned by the appointment of Mr Murray please rethink your choice.

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