Another Reader - from Ali

Absolutely spot on Robert. You hit the nail right on. The need to come away from selfishness and greed is a must in order to amend the financial, physical, and mental damage and return to better times. I just hope it won't be too long before some media outlet picks up and leads the way to exposing the truth around this shocking injustice brought upon the innocent and unsuspecting public.

We the victims should have our fraudulent loans extinguished right away. We should not have to wait until someone in Government is willing to sort out the mess. This could take years and we just want to get on with our lives.

It is so unfair to keep us imprisoned in this way as if we were the guilty ones. Bring on our deserved freedom....

ED:  One wonders why Bankers responsible for the dreaded SERVICE CALCULATOR are not IN JAIL.  

Extract from my prepared speech:

With respect to FOS: There have been six cases won in the courts by Consumer’s vs Lenders.  Judges have found the Broker (64% of loans we investigated are by Brokers) to be the agent of the Lender.  FOS has a duty to follow the lead of the courts and is not doing so.  FOS is cherry-picking arrangement, evidenced by Determinations which clearly advantage the Lender on this point.

FOS is reporting systemic issues to ASIC but ASIC told the 2012 senate Inquiry “there are no systemic issues.”  There has been a mounting set of key indicators to suggest foul play in the banking sector since the initial 2003 Low Doc report.

FOS is taking advice from a “banking expert” who is seconded to FOS from Major Lender and has access to all files as we understand.  This would be akin to allowing a corrupted police officer into case related files.

This case manager is now phoning clients and refuses to communicate in writing.  In the past two months, instead of a recommendation which we can answer on behalf of BFCSA members, FOS has skipped this process and axed the Panel of Review.  Instead, victims of bank fraud are being given a “take it or leave it” document known as the Ombudsman’s Determination and there is no right of appeal, nor any right to respond.  This is despite the initial letter relating to Terms of Reference to the customer, stating that first step is investigation and then recommendation.  

The complainant has then 30 days to take the offer given, or file disclosed and bankers move in with writs.  These FOS letters suggest: “YES we have found Maladministration in Lending, so we offer you a $5000 reduction in mortgage.”  The 75/% reductions in mortgage loans for similar cases, have recently been abandoned due to the escalation in complaints.

This is no way to deal with serious cases of criminal offences being committed on older persons.  It’s a new trend emerging in handling complaints of great concern to BFCSA.  It demonstrates that FOS can no longer be trusted or believed and is delivering highly questionable decisions.

The gate-keeper policy is not working. 

FOS is ignoring the key evidence to date.  FOS initially used their powers in 2009 to demand discovery of documents from Lenders.  Now FOS refuses to assist with demanding documents, which is in the Lenders’ best interests.  Lenders say “documents are missing and ASIC accepts that.”  Lenders win again.   Yet FOS states in letters that complainants must make all their files and current financial details available to the Lenders, and failure to provide will mean closure of file.

FOS is a one way street, funded by Lender members and has become unworkable in our collective experience.

The SERVICE CALCULATOR is the Lender’s secret weapon.  I discussed this in detail with ASIC.  The Service Calculator form printed out by Broker or Bank staff “must be attached to LAF, or we will not process your deal.”  This is contained in evidence provided to the Commissioner.  The clients are signing to say they have seen and read and understood everything, yet the clients are only being presented at point of signing with 3 pages and not 11 pages as a complete LAF document.


FOS, COSL, ASIC all refuse to assist consumers in recovering this document.  We have managed to procure a few one page service calculator printout and work sheet.  It’s states MUST NOT BE SHOWN TO BORROWER.