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
728093

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!"

Lee Doyle

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

Sneaky Credit Tactics - watch out for the Loan Sharks now

Posted by on in Consumers Fight Back
  • Font size: Larger Smaller
  • Hits: 1906
  • 1 Comment
  • Print

The Senate Inquiry, last week, was told that Australian is losing its taste for credit.

The demand for home loans is probably dropping as well.

Borrowers are paying off their home loans more quickly.

So where are the lenders going to find more clients willing to sign up for credit to keep their bottom line?

And are the lenders getting the message yet: more Australians are a wake up to credit rorts these days and are shopping around for better - and straighter - deals.

It was too much to expect that all dodgy deals and credit tactics would stop last week when the banks got a collective attack of conscience over their lending "mistakes"!

It's still going on ... in other credit markets ...

This story is not about a Lo Doc Home Loan. It's about a vehicle leasing agreement with similar problems.

Steve, the maintenance guy, went to replace his ute. He took all his income paperwork in to get the finance sorted.

The first finance expert, from Capitol, didn't want to see his income proofs, said it wasn't necessary. So long as Steve agreed to make the repayments, that was all that was necessary. She offered him a deal at close to 12% over 5 years.

Steve did the figures. He said Capitol were "very pushy". He said they wouldn't let up on him. The numbers didn't stack up for him - after 5 years he'd still be facing a residual payment. He turned down their offer.

The second finance expert, from Macquarie Bank, was willing to look at Steve's last two years income. Gave him a good deal at 8%. Steve took it and got the ute.

Steve thought it was strange that Capitol "wasn't interested" in seeing the proof of his ability to repay them.

I told him that's how they can then charge him a higher interest rate on the basis that there was no proof of income and thus he's more high risk as a borrower.

Steve was not impressed with Capitol's behaviour. Pushy and sneaky.

So consumers now have to watch out for credit and finance "experts" (brokers) who are refusing to see their income paperwork and then manipulating the system to charge consumers higher interest. 

Last modified on
Rate this blog entry:

Comments

  • doyla66
    doyla66 Thursday, 16 August 2012

    I was talking with my 20yr old son about this. There has been a proliferation in the media (radio/tv/net) about tradies vehicles for a while now. Especially here in WA & I would suspect Qld where the resources booms have been, this must have been the next market for the finance brokers after the GFC. Those "next car now deals", "talk to us" with the 'stiff as a board trusty footy players', etc. I wonder how long before all of those tradies on leases will take to realise what has occurred? Expensive work vehicles with a huge residual & no possibility of a decent trade.
    With banks now trying to target the superfund markets, brokers are looking at vehicles. I am so glad I taught my kids to save the cash, buy outright & never take a loan on a vehicle.

Leave your comment

Guest Friday, 14 August 2020