GLOBAL SUB-PRIME CRISIS

BANKILEAKS

Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook
 

facebook3           facebook2 

BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

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.

Visitors

Articles View Hits
728062

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: Jon Denovan Gadens (Bankers Mate) suggests Fast and Tricky is best for Lenders and Borrowers. What Rot!!!

Posted by on in ROYAL COMMISSION URGENT
  • Font size: Larger Smaller
  • Hits: 2244
  • 7 Comments
  • Print

Meeting new ASIC guidelines tough for brokers, says solicitor

 
Brokers could face challenges to meet ASIC’s responsible lending guidelines in the wake of The Cash Store case, says a leading solicitor.

In November 2014, ASIC updated its guidance for credit licensees following a Federal Court decision that saw a lender taken to task over verifying clients’ living expenses. The regulator updated RG 209 to reflect the Federal Court's ruling in ASIC's case against The Cash Store.

The ruling found that payday lender The Cash Store and loan funder Assistive Finance Australia had failed to comply with responsible lending obligations. According to ASIC, many of the companies’ clients were on low incomes or in receipt of Centrelink benefits.

ASIC said the updates to RG 209 reflect the findings of the Federal Court, as well as to make it clear that credit licensees “cannot rely solely on benchmark living expense figures rather than taking separate steps to inquire into borrowers’ actual living expenses”. 

“The Federal Court's decision makes it clear credit licensees must, at a minimum, inquire about the consumer's current income and living expenses to comply with the responsible lending obligations. Further inquiries may be needed depending on the circumstances of the particular consumer,” ASIC said in a release which accompanied the decision.

However, Jon Denovan, a partner at Gadens law firm says lenders and brokers find themselves facing challenges to meet ASIC’s new guidelines.

“How can licensees meet both customers’ immediate requirement and objective of a fast and easy approval, while at the same time meeting the legal obligation to enquire and verify information about ability to repay and the customer’s ‘underlying requirements and objectives’?” Denovan said.

“The Cash Store case demonstrated that courts will impose significant penalties on licensees who do not comply on a systemic basis. The case demonstrated that generic statements about purpose will not be sufficient, and that more detailed enquiries and verification may be appropriate in respect of more vulnerable customers.”

In February, The Cash Store and Assistive Finance Australia were charged with $18.975 million in penalties by the Federal Court for their failure to comply with consumer lending laws, the largest civil penalty ever obtained by ASIC.
 
Dear Jon, Its the Bankers and Lenders who want "fast" service which is NOT in consumers best interests.  So the gravy train that Gadens have made zillions from (unverified loans) is about to crash into an RG209 barrier and is coming to an end at last?  Bye Bye SubPrime??????
Last modified on
Rate this blog entry:

Comments

  • Duped
    Duped Saturday, 25 April 2015

    Duped

    Banks always wanted a fast track to mortgage loans, ignoring so called bank due diligence which they were busy telling FOS and COSL, oh, that's what we have always done, always checking to see if people could afford repayments. What rot. The banks and lending institutions have abused proper lending practices for over a decade now and will be forced to do proper checks. I wonder if the dreaded service calculator will disappear or will they find another crevasse to hide this from borrowers. The courts now understand the abuse, isn't it a wonder ASIC, FOS and COSL with all their so called brilliance and lawyers at their beck and call didn't work that out before this, after all our letters to them informing them of the abuse by banks. Suck it up time is coming.

  • Wayne
    Wayne Saturday, 25 April 2015

    parse the parcel is almost down to to the big surprise in the center, the last one standing now is BANKS & ASIC there soon will be no one else left to blame once that last cover has comes off.

  • Aries
    Aries Saturday, 25 April 2015

    Gadens would say that, they're the banks lawyers, making hundreds of thousands, they will lose business
    if rules are tightened.

    Reply Cancel
  • NABbed Nanna
    NABbed Nanna Sunday, 26 April 2015

    Brokers get over it. You have had it to easy for to long. Brokers and their buddy bankers have deceived and manipulated figures and consumers for way to long. It is an industry full of greed. Ok. So there are the good Brokers out there but I have only ever dealt with one and he was a shonky criminal with not accreditation we now know. Nab didn't worry about that tho. Nab approved his application on our behalf in only 2 days. Trouble is we didn't sign the required documents for him to go ahead on our behalf. No signatures Nab, no authority to even commence a loan assessment. We didn't even know what the ex Nab bank manager was up to. He provided the business plan, figures etc and we did not even know him from a bar of soap. We now know it was a set up and here we are thinking all was done with the up most propitiatory. What gullible country bumpkins we all were. Nab you stink for this dastardly trick of maladministration. I hope the BDM and the Broker enjoyed their commissions for we surely haven't been celebrating. Greedy devils the Nab are. !!!!!!!!!!!!!!!!!!!!!!!

  • Aries
    Aries Monday, 27 April 2015

    So it's back to the good old days when banks checked customers earnings and their capacity to repay thoroughly.
    Customers waited without complaint. Is Gaden trying to make us believe that the customers will miss out and won like it?
    Yeah right!!!

  • TJ
    TJ Monday, 27 April 2015

    Well, Whoopty Doo, poor Jon Denovan, you can tell he feels so much for those poor bankers who are now going to be faced with difficulties in meeting the customers 'immediate requirement and objective of a fast and easy approval while at the same time meeting the legal obligation to enquire and verify information about ability to repay'. Unfortunately Jon, the banks manipulated and rejigged the figures supplied by the prospective borrowers through their brokers thus allowing the banks to approve the loans the thousands of Asset Rich Income Poor (ARIP) were given with absolutely no chance of ever paying them back. Sorry Jon, you are a solicitor/partner in a well established law firm who derives much of its income from the big banks and it must really pain you to think that banks might be drawn into this whole dirty business. Really, the cheek of some people to paint them with the same brush as brokers or those pesky irresponsible borrowers. And isn't it a shame that those same irresponsible borrowers and their families, friends, supporters and sections of the media and even some politicians are now demanding a Royal Commission with far reaching Terms of Reference. Don't be alarmed though Jon, surely the terms 'Banksters' and 'Control Fraud' will not apply to your clients. If it had, then those well intentioned and diligent members of ASIC, FOS and COSL would have established that point in their very thorough investigations well before this. I really do feel for you Jon and keep up the good work!!

    Reply Cancel
  • setup
    setup Tuesday, 28 April 2015

    Brokers are trained and paid by the banks to push and encourage clients to use their specific bank's products. The total blame for this crime lies entirely with the banks.

    Reply Cancel

Leave your comment

Guest Friday, 14 August 2020