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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: CBA told by ASIC to re-open all compensation claims New Licence Conditions

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http://www.smh.com.au/business/banking-and-finance/cba-told-to-reopen-compensation-for-advice-victims-20140516-38fd7.html

CBA told to reopen compensation for advice victims

Banking and FinanceBusiness

Date May 16, 2014 - 6:26PM

Adele Ferguson and Ben Butler

Commonwealth Bank has been forced to reopen its compensation process for victims of shoddy financial advice provided by two of its planning businesses.  More than 4000 customers of Commonwealth Financial Planning (CFPL) and Financial Wisdom will now be able to apply for compensation under new licence conditions imposed by corporate watchdog the Australian Securities and Investments Commission.  The decision comes after a joint Fairfax Media and Four Corners investigation into the two groups revealed that compensation payments to customers of planners in both divisions were not given the same treatment.

ASIC has also admitted giving inaccurate testimony to a Senate inquiry into its performance over the financial planning scandal.  In a statement, ASIC blamed the bank for leading it to mislead the Senate, saying it sourced its information from CFPL's submission.  The CBA said that on Friday it gave the senate committee ''additional clarity on its submissions''.  The bank previously told the inquiry that compensation of $51 million was paid to victims but failed to make it clear that, in addition to CFPL customers, that number also included $7 million paid to customers of Financial Wisdom planner Rollo Sherriff.  Senator John Williams, who is leading the inquiry, said he commended ASIC for its decision to act swiftly on CBA.

Read more: http://www.smh.com.au/business/banking-and-finance/cba-told-to-reopen-compensation-for-advice-victims-20140516-38fd7.html#ixzz31vSESXTm

 

We want ASIC to order all Banks and Lenders to re-open all compensation claims re Low Doc Lending Scandal.  Hopefully The Senate Committee will see why this has to happen.  ASIC has had to be dragged screaming and kicking into Parliament to explain its woeful non action record and its apathy towards consumers.  No wonder the government decided to chop ASIC in half and fire huge numbers of them.                   This email address is being protected from spambots. You need JavaScript enabled to view it.

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  • doyla66
    doyla66 Saturday, 17 May 2014

    Good to see ASIC beginning to distance itself from CBA.
    Granted the initial purpose of the Senate Inquiry was the CBA Financial Planning scandal, but when are the victims of the Lo Doc Lending scandal going to see compensation for the losses they have endured? Not just financial losses or the loss of their homes and properties, but the loss of their security, their sense of safety, their trust in financial institutions and their faith in government. It's important for the government to come down clearly on the side of the honest, defrauded and unfairly treated borrowers without further delay - important for the integrity of government and vital for the borrowers still caught in the lending trap with time bomb fraudulent loans while Banks and other lenders threaten their right to live in their own homes.
    Not surprisingly CBA features regularly in lists of fraudulent loans, as do the other Big 4 Banks. There is no guarantee yet that loans being issued now are any "cleaner" than those issued years ago. While the loan service calculator is being used to manipulate EVERY borrower's financial data there will be fraud in lending. When ASIC gets around to cleaning up this misconduct and changing the rules they will probably permit a 12 months "easement" period to protect Banks from loss of income through fewer borrowers being successful in getting loans. It would be better if ASIC foreshadowed their intention to clean up the misuse of the calculators NOW and bring it to a halt so everyone knows where they stand when the changes come in.
    The Banking Code is fairly useless, self regulation has been a huge failure, the regulators still have no teeth nor the ticker for a fight and the Law is just an obstacle to get around on the road to riches in Australian Banking. It is left to individual consumers to take their fraud loans to FOS/ASIC/COSL and the Police.
    We're all looking forward to a Four Corners program on the nitty gritty of fraudulent lending. It seems that's the only way to get serious attention on this issue.
    The smartest move a progressive lender or Bank could make NOW would be to promote themselves as using real figures and in all ways doing the right thing by their new borrowers so they aren't being misled and do have all their paperwork to check against their contracts and other mortgage documentation. Who is going to take that bold step and show up the rest of the Banks and lenders as failing in their lawful and ethical obligations to consumers? Until that happens it's safe to say that ALL Australian Banks and lenders are continuing to exploit borrowers and other consumers of financial products in any way they can get away with.
    Caveat emptor certainly applies to Australian lending!

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