During the coming weeks, my tireless team of bloggers will re-blog some of the previous classics, lest we all forget.   On 8th August (2pm) I gave evidence in the Federal Senate Inquiry into Banking - Post GFC.   One of the issues raised with the Senators was concerns that we have many people living in their homes for years and paying no payments and we suspected under reporting of defaults to APRA.  We had concerns, and still have that domestic loans were being re-jigged as business loans to enable banks (attempted) to avoid responsibility to their customers.  Classifications of these mortgages has become a sticking point with the Financial Ombudsman's Service ("FOS").

Australian Prudential Regulator Authority ("APRA), sister regulator to useless ASIC on the Twin Peaks System, upon hearing my evidence wrote letters to all major banks and lenders.  It took 14 days from the 8th of August, to pen the letters.  We were never privy to the responses.  APRA and ASIC wrongly believe the public, taxpayers, have no right to know anything they find of concern.  The Banks were permitted to tweak their files and no-one checked whether they mended their ways or in fact, changed all files into correct mode.  Our evidence suggests NOT.  APRA do not follow up these matters, so we thought we would throw out a few reminders 2013.  Since then, is it bad bank business as usual?  Afraid so.

Below is the article from the John Dagge at the Herald Sun, 29th September 2012.  Our files back up this story that the Banks were very naughty boys indeed..................no punishments for the "errors."   APRA sent out 30 "Tut Tut Tut"  letters and that's it?  This was fraud...........  Intention to deceive.  Ah well!  Let us all sweep it under the carpet shall we?

THE Commonwealth Bank and NAB have been forced to reclassify almost $13 billion in home and business loans after making a reporting blunder. Source: PerthNow THE Commonwealth Bank and National Australia Bank have been forced to reclassify almost $13 billion in home and business loans after making an embarrassing reporting blunder. The errors, declared to the Australian Prudential Regulation Authority, involved the pair incorrectly classifying household loans as business loans. CBA accounted for the bulk, incorrectly labelling $9 billion of loans made to households as business lending in the 14 months to July. It has also reclassified up to $1 billion in deposits that were listed as belonging to households. The funds are now classed as deposits from businesses. NAB has also run foul of APRA's rules, classifying $3.9 billion of business lending to 5000 customers as household lending in the two... (see previous blog)   This email address is being protected from spambots. You need JavaScript enabled to view it.