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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: Major Bankers wish all Mothers have an overloaded Credit Card and a Happy Mothers Day

Posted by on in ROYAL COMMISSION URGENT
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Every wonder how much money banks are making on each credit card per year?  MEGABUCKS.  Time to stop the rot, but I can only do this with your assistance.

If you are on a pension and have finished your working life with monstrous credit card debt....here is a BFCSA solution for you..............................

Dear Imprudent Banker CEO:

Mrs Dxxxxx is 78 years old and lives alone.  As a lifetime worker she retired in 1999.   She exists on an aged pension and owns her own home.  She has been a loyal customer of Major Bank for some 52 years.  The only debt she has is a credit card debt of $14,000.  Had she had this small amount on a P & I mortgage the debt was extinguishable in the long term at a much reduced rate of pay.  The current credit card products has been designed as a “till death do us part,” money spinner for the bank.  It is therefore the unconscionable nature of the product that is most distressing.

Mrs Dxxxx acknowledges seven years ago she spent $18,000 of the money given to her as a facility on the credit card on repairs.  She has not used the card for purchases for approximately seven years.  Despite her devoted loyalty, the bank insists she continue to pay $150 per fortnight from her pension, the collective sum being $27,300 in payments since her last purchase.  That means the debt has diminished by $3,300 as testament to Mrs Dxxxx’s loyalty.   Yet Major Banker has managed to gouge an additional $23,800 “profit” from the pensioner during the past seven years….and I presume the bank and the shareholders will consider this good business practice.

On several occasions in the past Mrs Dxxxxx was offered a higher credit card limit that was a foreseeable disaster by Major Bank (due to customer low income) as  unaffordable debt due to Major Banker’s complex interest schedule preventing Major Bank’s own customer from ever  focusing upon the extinguishment of debt.

Major Bank targeted Mrs Dxxxxx as a “suitable” customer for its products.  And the current debt stands at $14,000 for purchases she made almost a decade ago.  Her minimum payment is $290 and she attempts to pay around $200 p m above that minimum.  The disclosure of interest risk at the bottom of the statement is meaningless as the customer is already entrapped into the agreement and those risks should have been disclosed prior to lending money. 

However, Major Banker as a prudent banker, ought to have made a phone call to the customer prior to agreeing to accept credit, that the customer fully understood these long term risks of rates lowered by RBA but Bankers sending the rates sky high as an internal decision, to greater than 20%.   No such phone call from common decency thought lines and decisions was made.

CREDIT CARD PRODUCTS

These card products were engineered, manufactured and marketed to customers as being a long term “plan” to assist customers in a manageable way.  The results are not consistent with being a prudent banker.  The RBA rates are far below that which Major Banker chooses to charge its loyal customers around 20% for this “service.”    Major Banker also charge its customer an additional $9 “late fee” and that occurs around 5 times a year. 

Mr CEO, your bank is even punishing its customers for “struggling” with minimum amounts….an additional $315 over seven years….a weekly pension equivalent, despite the small legality here that the bank has no power to punish anyone.  Only elected Governments can punish people.

The statement does suggest Mrs Dxxxxx, aged 78 has to repay the bank $63,401 over the next 85 years, if she wishes to extinguish the debt of purchasing, the cost and privilege of using $18,000 of Mad Banker Money.

One could be forgiven for believing these cards are “highly profitable.”  Others may be suitably forgiven for considering the products to be geared for highway robbery.

Major Banker knew Mrs Dxxxxx’s income as a loyal customer at the time of handing over the card.   Major Banker also knew Mrs Dxxxxx’s age.  Major Banker knew the inherent risks and high cost of this product and knew the mechanism that would see these rates rise, despite RBA rate falls. 

Major Banker made the decision to sell a product to a vulnerable person, who would not be expected to know the inner workings of a banker’s mindset. No-one is playing with a straight bat in the banking sector, but that does not excuse the use and marketing of these wretched products. 

Major Banker sank its claws into Mrs Dxxxxx many years ago and behaved as if the Bank was an upmarket “a pay day lender.”  In this case, Major Banker used the information available on its own customer database and turned its “service” into that of a “pension day lender.”

Now is the time to rectify this dreadful wrong.  During the past 7 years Major Banker has “earned” $23,800 for the original debt.  That is well ahead of the RBA rate and probably enhances Major Banker's personal bonuses for running these credit card debt PONZI's.  

I also note this is a relatively small debt given the average debt for credit cards in Australia.

My suggestion is that Major Banker forgive the debt and as a loyal customer, Mrs Dxxxxx is placed back in a position where she has no credit card and no associated agony that runs with it.

 

I suggest the ongoing collection of the debt can no longer be tolerated under the circumstances.  This email address is being protected from spambots. You need JavaScript enabled to view it.

PS:  Government taxes are charged but amount not revealed.  Why is the Government profiting from this fraud? Why do we not see the dangers of banks being "self regulated?"  ASIC continue to bleat "Buyer Beware" and do nothing.

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Guest Tuesday, 17 September 2019