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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: Rent to Buy Scams and here is Rick Otton again! BE WARNED!!!! Where are our Parliamentarians on Property Spruikers - having a nap? This is a Banker scam.................

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BIG POINT HERE IS:  There are 100 plus, on our list of villains........................why hasn't ASIC closed them down?

Behind all these spruikers there are Bankers as when the time is right to hit these poorest of people will be fed like christians to the lions - to the lenders with the worst track record for future loans!!!!   Behind every misleading Spruiker there is a hidden evil Banker.

Why hasn't Parliament outlawed PROPERTY SPRUIKERS when we complained back in 2001 to the Howard Government and in particular the then Finance Minister Joe Hockey?  Property Spruikers prey on the most vulnerable.  Rent to Buy is nothing new - old scams leading more vulnerable people into the waiting arms of bankers and high cost risky Liar Loans.  Nothing changes.  Banks need more cannon fodder to assist their developer clients of the bankers with distressed properties.  We know how the game is played and so does Rick Otton et al.  THE GLUT OF APARTMENTS IS ON............................so enter the distressed properties and round we go in another circle.

Remember Henry Kaye - King Spruiker?  He taught 1000 spruikers to model his activities........scary thought. Henry's Bankers were ANZ, then St George and then Hannover - lest we forget.   Bank's not involved????  Oh Please!!!!        This email address is being protected from spambots. You need JavaScript enabled to view it.

http://www.afr.com/p/national/rent_to_buy_plans_prey_on_the_property_XMVYOHYrQ2dkWZ5SYw6KyK

 

Rent-to-buy plans prey on the property desperate

Duncan Hughes

Desperate house buyers and sellers are being matched by intermediaries who cream off large commissions in complex rent-to-buy schemes, according to lawyers and consumer advocates.

 

High advance fees and punitive rents routinely result in deals collapsing before the mandatory rental period - typically about two years - but after most of the commissions are paid, leaving the would-be house buyer worse off they say.  The intermediaries are often linked to property spruikers, who also seek to earn large commissions by encouraging buyers to use the equity in their homes to buy multiple investment properties.  A mish-mash of state and territory regulations means those offering the schemes can avoid prosecution, or closure, by switching their operations to a different part of the country.

 

As soon as there is any enforcement action, they change the contracts or model slightly so as to not get caught by credit laws or real estate agent laws, Gerard Brody, chief executive of Consumer Action Law Centre said.

 

For example, Sydney-based promoter, Rick Otton, who recently agreed to stop promoting his rent-to-buy scheme in Western Australia for two years, is operating in other states and territories.  Mr. Otton who declined to comment runs seminars to train attendees on how to set up rent-to-buy schemes with promises of big profits in strong property markets.

 

 Lawyer and consumer advocate Carolyn Bond said: "Mr. Otton is another type of property spruiker.  He targets those who have little money to invest and teaches them to make money from facilitating rent-to-buy contracts between desperate sellers and buyers who can't get mainstream/bank finance".

 

Consumer watchdogs are warning that spruikers and get-rich-quick property schemes are proliferating as their operators exploit fears of rising property prices and the risk of losing out on profits.

 

 Rent-to-buy schemes vary widely but are usually marketed to potential buyers who have difficulty obtaining finance from conventional sources.  The agents monitor house sales to identify slow-selling property and arrange a deal with the owner to sell the house as a rent-to-buy, or a "no-loan home".  A prospective buyer enters into a lease agreement to live in the house with an option to buy, typically between two to five years of paying rent, depending upon the circumstances.  In addition to higher rent, some of which is used to pay down debt, the potential buyer also pays an ongoing option fee, likely to be between 10 per cent and 15 per cent of the purchase fee.  That could be about $40,000 on an average suburban house.  In some cases the intermediary encourages buyers to apply for credit cards if they cannot obtain a bank loan for the initial fee,

 

 If renters reach the end of the agreed lease period they can buy the house at a pre-arranged price.  Critics claim the schemes take advantage of vulnerable people, often charge extortionate fees and that buyers who default on their tenancy agreements, or cannot get finance to buy the house, are at risk of losing their money.

 

 

 

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  • setup
    setup Tuesday, 19 August 2014

    Yes we are the poor unfortunates who innocently fell into their well organised trap and now are left to struggle through life the best way we can. Shame on Parliament, shame on Asic and everyone else involved. Joe Hockey needs to get out of Politics completely as he does not respect the middle to poorer class people and refuses to understand acknowledge or sympathise with their situation.

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