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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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Consumer Warning : Affordability For A Day Scam: LOCS. Bank Trickery Exposed

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If you do not fully understand them.  If your "friendly" Broker or Bank Manager suggest a LOC, please mistrust that person immediately...

LOCS of $350,000 being offered to pensioners.

Let us know if this happens to you.  Members please tell us your experiences.......

Wayne explains:

"This is a common, deceitful tactic of the CBA (and others) to get the borrowers to suggest the loan known as a Line Of Credit (LOC).
The bank/broker advised us that our loan should be set up this way, as a LOC.

This way, the borrowers get deeper & deeper into debt over many months or years (as in our case), eventually resulting in the borrower reaching the limit of the loan.  The loan repayments made to the CBA basically came from the loan itself."


The product is sold that there are no repayments (eg use free money for 3 years) and then FOS recommends "the LOC was affordable at the start, but you made decision to spend the money".....this happened to Nathan and Sarah aged 62.

I asked FOS:  "Why would these people borrow the funds if not to use them????????"  The strategy they were given by banker's agent was to  use LOC to buy property and so they did as advised a few weeks later.  They were on a low income.  

On DAY ONE with nothing withdrawn FOS & THE BANK reasoned the Loan was Affordable on that day!!!!!!!

Affordability For A Day Scam = LINE OF CREDIT SCAM

FOS say they cannot reason otherwise as the banks used trickery to abuse a "technicality of affordability" as per Reg 25 of Australian Banker Wankers Code.  The intention to deceive is obvious now we have uncovered the scam.

ASIC as always is doing nothing about this.  Who is responsible for protecting consumers????

The Differences between Low Doc and LOC?  A Low Doc we can demand extinguishment of loan, with a LOC - you are left with the debt and that is why the banks love this product.

Those who were signed up for LOW DOC LOANS have the argument available to them that there was an Imprudent Lend (as per High Court in Firstmac vs O'Donnell")

Those who sign up for LOC, are told "you can afford this."  The funds are diminished by the cost of the loan...leaving the uninformed borrower with a massive big debt and as we see often recommended overinflated porperties that creat losses.

Average net debt of LOC: $200,000 on initial borrowing of $350,000  DO NOT GO THERE

Report the Bank to us and we will campaign against them......for being dirty banksters.....

Denise Brailey

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  • doyla66
    doyla66 Wednesday, 19 September 2012

    NAB "Flexi-Loan" pushed on me; culminated in ING 'refinance';a 'mortgage bunny' jumping from 'hole' to 'hole'(bigger).

  • doyla66
    doyla66 Thursday, 20 September 2012

    Have you noticed how everything with NAB is "Flexi"?

    Flexi card, flexi account, flexi loan, flexi super ! The only things the NAB is inflexi about is good old fashioned 'honest' [cough, splutter] service. Question: what is the new fangled name for "core" bank business these days? Answer: It is NOT customer service that is for sure.

  • doyla66
    doyla66 Wednesday, 19 September 2012

    I'm so naive and trusting and stupid..the crook Brokers
    prey and clap their hands in glee when they come across
    someone like me. I thought they were supposed to be honest!
    Use LOC to buy property because I've got lots of Equity and the banks
    would not lend it to someone who could not afford it. But the Bastards did
    they knew exactly what they were doing and the greedy brokers went along with it.

  • doyla66
    doyla66 Wednesday, 19 September 2012

    Mortgage EZY Pepper Home Loans LOC $600K .. this loan paid out 2008 from the sale of our own home.n This loan was the start of the END for us.
    Before the LOC we had $55OK equity.. TODAY we have no equity.. We too are "mortgage bunnies" jumping from "hole to "hole" (MUCH bigger) similar to Andy.

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