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BFCSA: FOS under FIRE for July 2013 "Pilot Program" run by Bank expert. Smells of cover-up. Bank Fraud victims demand all cases be immediately re-opened by INDEPENDANT REVIEWER

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In 2009 I spoke with FOS again and they told me they were starting to use Maladministration in Lending to deal with issues I had raised.  We told Members to state “Maladministration in Lending on all complaints where the loan was unaffordable from day one, in line with S 25.1 of the Bankers Code.”  This was pre the new NCCP  laws......why?  We had the old laws to protect consumers from predatory lending and bad lending practices such as forgery and fraud on Loan Application Forms, and Unconcionable Conduct 2001 and Maladministration in lending, and asset lending etc....................................plenty of LAWS for ASIC to play with and for FOS to use: an arsenal of weaponry against the banks and their dodgy lending products.

Banks had breached the Code at all levels of approval of loans.  Most of these loans ought to have been rejected...............................hence the complaints.  Most 30 year loans would by necessity  of structure implode within 3-5 years.  But these products made lovely fat profits for the banking industry....and they were hooked on greed.  By 2005 Banks had openly boasted in main stream media to targeting ARIPs....older Australians who owned their own home but had very low incomes....mostly pensioners.

This means at the time that most complaints from the general public with around 15,000 complaints re MORTGAGE home loans per annum were being treated by FOS as usual “hardship” problem….easier for banks.  FOS had told no-one prior to our discussion to ask for the Loan Application Form - the "LAF."

Our Researcher has been delving into FOS' background and annual reports:  Have a good read if this concerns YOU and Your Home and future security.  We demand that all cases on the PILOT be re-opened and examined by independent reviewer - and not a banker!  This email address is being protected from spambots. You need JavaScript enabled to view it.

In 2011-2012  a staggering 92% of disputes re  consumer credit products were about MORTGAGE HOME LOANS

 

So in 2011-2012    12,158 disputes involved MORTGAGE HOME LOANS

WHICH REPRESENTED 50% OF ALL COMPLAINTS  (48% in previous year 2010-2011)

 

In 2012 – 2013 showed 49% of all disputes were related to credit products and WE ASSUME a similar 92% OF WHICH related to MORTGAGE HOME LOANS

 

FOS states 709 related to Maladministration in Lending (that means BFCSA complaints as FOS was not using that term for other complaints), up by 212% since 2011, and up 337% since 2010.

 

So In July 2013 FOS claimed it was embarking on a pilot program aimed at identifying matters relating to maladministration earlier so that we can deal with them in the most efficient way and reach a decision earlier.”

 

Renata is pissed off as she says because FOS took 18 months (normal wait time) to deal with investigation of her case, she stopped paying monies as hubby had lost his job.  FOS agrees the fees and charges must be extinguished as part fop settlement BUT FOS used this figure in the $280K limit and she missed out on the additional fees and charges already paid by the Egan’s because although Maladmin, took the figure to OVER the $280k limit due to the 18 months time frame it took to investigate.  Had the investigation by FOS taken only  3 months, the rduction in loan would have been significantly better and reduced the disputed $852K.  Several others have complained about this…………………………….

 

FOS REPORT INCLUDES

Re Maladministration in Lending 2012-2013

 

“The number of disputes we accepted about maladministration in lending more than doubled in 2012-2013. There were 706 disputes lodged which related to this issue compared to 333 in 2011-2012 and 209 in 2010-2011. FOS also saw a 99% increase in the number of disputes about maladministration in loan management (153).   In July 2013 we will embark on a pilot program aimed at identifying matters relating to maladministration earlier so that we can deal with them in the most efficient way and reach a decision earlier.”

 

Then in other research it explains in 2008 their approach to Maladministration in Lending and this is similar to what Field explained to me:

http://www.fos.org.au/custom/files/docs/bulletin_60_dec_2008_banking_finance.pdf

What Happens if There is Maladministration?
If there is maladministration in lending, we encourage the parties to resolve the dispute by negotiation. If the dispute cannot be resolved by the parties, we will assess how much of the debt is repayable and, in appropriate cases, we may assist the parties to reach a mutually acceptable repayment arrangement. It is important to stress that the Ombudsman considers disputes on a case by case basis and the general approach described here may be varied depending on the circumstances of the case. It is our view that, if there has been maladministration in lending, the customer should be returned to the position they were in, had the loan not been approved. A customer cannot retain the asset purchased with a loan and, at the same time, claim that they should not be liable to repay the loan.  Refinance  Where a disputant claims that a financial services provider has engaged in maladministration and the proceeds of the loan were used to refinance a pre-existing loan on similar terms, we do not consider that the disputant has suffered any loss as a result of the refinancing, since the disputant simply transferred liability for a debt from one financial services provider to another. If however, the new loan had a higher interest rate or fees, compensation may be payable to the extent of those higher costs.  If additional funds were advanced at the time of the refinance, we would apply the principles outlined above to that additional amount only.

This is classic from 2002  COLIN NEAVE controlled ABOS:  (the old FOS) 

http://www.fos.org.au/custom/files/docs/bfso_annual_report_2002.pdf 

Maladministration in Granting Loan.........  Resolution - A conference was held with the parties and the Ombudsman, and further negotiations took place over subsequent weeks. The dispute was settled with the bank reducing Mr S’s outstanding debt by $90,000. This represented a 75% reduction in the debt.

 

MONDAQ interpreted FOS Annual report figures as this:

http://www.mondaq.com/australia/x/158138/Financial+Services/Internal+and+external+dispute+resolution+for+credit+and+financial+service+providers

Australia: Internal and external dispute resolution for credit and financial service providers - Last Updated: 20 December 2011

Dramatic increase in number of complaints - The FOS Annual Review noted a 27% increase in complaints lodged compared to the previous year. It was noted that “disputes about credit products and services – especially home loans, credit cards and personal loans – have risen particularly sharply"2. The total number of disputes lodged at FOS during the past year came in at 30,283, (2010 – 2011) which was over 6,000 more complaints than the preceding year and almost double the number of complaints lodged in 2007-2008.

 

FOS try to say half of these total complaints are re CREDIT PRODUCTS (Mortgage Home Loans represent 92% of those credit products) 

Then in LANGES: 

http://www.langes.com.au/consumercredit/2011/04/11/fos-case-studies-responsible-lending-and-maladministration/

In the low doc lending case study, the Ombudsman supported the case manager's conclusion that the borrowers should bear two thirds of their loss and the FSP was responsible for one third of the loss. The Ombudsman commented that "There is a legitimate place for low doc loans to cater for those self-employed borrowers who are unable to provide more traditional evidence of their income.

However, a customer’s self-declaration of financial details will not protect the FSP from having the loan considered maladministration or unjust if the circumstances were such that the FSP ought to have made enquiries but chose not to do so." 

          Thanks to our Researcher: Gladys                                                                                                                                                                           

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Comments

  • doyla66
    doyla66 Tuesday, 04 March 2014

    Time to start calling ASIC the good ship Titanic I think this is just the tip of the iceberg. Wonder what other rules they are now madly all FOSsicking through to further try and plug up all the leaks now being bombarded at them by us and our evidence of maladministration!

  • doyla66
    doyla66 Tuesday, 04 March 2014

    So if that's the case why are FOS pushing me to sell and take the bank 'offer' and haven't bothered asking me if I can afford a lowered repayment plan- does case by case mean really WHO WE CAN BULLY EASILY!?

  • doyla66
    doyla66 Tuesday, 04 March 2014

    What FOS told you Never Give Up is exactly what my bank manager told me when I went in to tell him I was intending to sell (before I was even in trouble). Looks to me now that all mortgages these days are considered investment loans, all loan terms are a big sham and if you don't play the game and sell up or renovate and flip your home or re-finance before the loan implosion date set down by Skippy then the b*****'s do anything and everything to force you out for daring to NOT play the game and spoiling all their fun of being able to wipe the slate clean, press the reset button, re-cycle what was your loan to some other poor unsuspecting sucker, further fiddle their books and keep all that hot interest flowing into their coffers!

  • doyla66
    doyla66 Tuesday, 04 March 2014

    Duped

    As per the banksters guide into how to rip the borrower off organza. I'm sure that the banks want you to get refinanced because in doing so it masks to a high degree what has happened and complicates any type of compensation. The EDR's or more to the point the bank seconded lawyers come up with ridiculous reasons to suggest why anyone would have refinanced and unfortunately the EDR case managers cant see past what dribble they are saying. On my laf's the only correct statements on them are our names, d.o.b., drivers license, phone no., and address, everything else is a fabrication e.g. employment history, employment status (unemployed bad health) wage history magnified 10 times, equity in business the same and in fact not trading.
    These people come out saying that they can find no reason for the lender to have not granted the loans !!! One simple phone call could have fixed that.

  • doyla66
    doyla66 Wednesday, 05 March 2014

    Yes Duped. They doubtless want everybody with an existing mortgage to re-finance so they can recyle the loan when implosion date is nigh. In their own very best interest to do so of course but watch out those who dare to not play the game and hang in there for then all the complications and fear of big secrets being exposed really kick in to give them huge migraines. In their eyes nobody but themselves are allowed to bend the rules of course. My LAF is very similar to yours and I hate to think how many more unsuspecting people are out there who might soon be in for the kind of toxic shock I was delivered a week after sold and settled via snail mail!

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