BFCSA Blog

Anyone listening to the Senate Inquiry into ASIC Performance today, would be forgiven for thinking: "we are listening to the same worn out excuses for non performance which consumers have had to suffer from ASIC hierarchy for more than a decade." Tanzer was the most pitiful, followed by Kell, and Medcraft was the icing on the cake.  After two years of Investigating LM investments, they have not been able to "conclude their inquires."  It's still ongoing and so was the endless twaddle coming from each member placed before the Senators. Kell left every answer to Kirk, and even he was challenged, stumbling on answers and then ending monologues with "I will take that on notice." As allegations of $10 million of wholesale products being sold to ordinary Mums and Dads, ASIC delivered a few more excuses, whilst Mr Medcraft kept muttering his dream words: "trust and confidence."  In your dreams Mr...

http://www.smh.com.au/business/revealing-look-at-asics-practices-20140402-35z1s.html   Revealing look at ASIC's practices Banking and Finance       Business  Michael West  SMH Date April 3, 2014 - 12:04AM James Wheeldon joined the Australian Securities and Investments Commission in mid-2004. It was his first legal job in Australia after graduating from Harvard Law School in 2000. He had just spent four years doing merger and acquisition deals with top-tier New York City law firm Skadden Arps. "I joined ASIC because I thought I would be working in the public service," says Wheeldon. "Silly me".  Assigned to the regulatory policy branch, he was soon to review an application for relief submitted under RG51 by the Investment and Financial Services Association, the body representing Australia's banks and big retail superannuation funds.  "This was not the first time I witnessed ASIC favouritism for the big banks but it was the most egregious thing I saw during my time with the regulator."IFSA,...

$3.5 billion reverse mortgage market a wasted opportunity http://www.brokernews.com.au/news/breaking-news/3-5-billion-reverse-mortgage-market-a-wasted-opportunity-179404.aspxby AB | 17 Sep 2013   The reverse mortgage market isn’t living up to its full potential and risks becoming a missed opportunity, according to Deloitte’s 11th annual study of the sector, released today. While the $3.5 billion market has clocked up more than 7% growth since 2012, the Deloitte report claims that, with the ‘tailwinds’ of the baby boomers retiring and an increasing focus on post-retirement funding, the opportunities in the equity release market are in danger of being missed by banks and other financial services organisations. As of 31 December, 2012, more than 42,000 senior Australian households had a reverse mortgage with total balances of $3.5 billion and James Hickey, the Deloitte financial services partner who led the study, says there’s obvious potential for even greater growth. “The size of the senior Australian population is set to increase by more than 50% in the...

Wonder if this happened?  Or is it still on the table?  26th November 2013.  Wish BFCSA could charge those fees to Bankers for cleaning up their mess.........Why didn't FOS suggest to Parliament that the ridiculously low compensation claim of $280,000 should be lifted to match the loans to pensioners of $4 million?  Unlimited Compensation to match their lending practices?  Start writing to the Senators.....banking is out of control!!  FOS to double its membership fees The Financial Ombudsman Service (FOS) is proposing to more than double its maximum membership fee to fund improvement of its services.  In its Fee Review Consultation Paper, FOS proposed to increase the maximum membership fee from $11,000 to $25,000.  “When the fee model was introduced in 2010, this was done so without detailed information on the numbers and outcomes of disputes under the new terms of reference,” said chief ombudsman Shane Tregillis.   “The proposed changes to...

The biggest crime of all in this country is Australian Securities and Investment Commission's negligence in protecting consumers from predatory conduct in the Banking and Finance sector.  Bankers manufactured dirty mortgage loans and marketed these faulty products via the broker channel. ASIC KNEW the crooked bankers had set up the Brokers and Borrowers to take the blame when the sub prime lending scandal eventually emerged, from  the subterranean depths of evil.  ASIC were duplicitous in the scam.  They covered up every step of the way knowing older, low income Mums and Dads (ARIP's) were the target.  Those who were fortunate and worked hard to own their own home. You may say these people were the backbone of our nation - proud Australians.  Yet ASIC permitted the banks to be untouchable.  Treasury covered up as well, so they could both blame one another.  ASIC briefs Treasury once per month and we can...

Loan book growth drives strong profits for major Australian Broker News 10th Feb 2014    A major bank recorded a cash profit of $1.73bn in the final quarter of 2013, spurred on by solid lending book growth.ANZ announced the unaudited profits this morning, which the bank says are up 13% on the same period last year.Continued growth in the bank’s Australian lending division has helped fuel profits, said CEO Mike Smith, with the bank recording above system growth for the past 16 quarters.“ANZ’s distinctive strategy based on growth in our domestic franchises, growth in Asia and strong operational and productivity disciplines is continuing to deliver a consistent improvement in business growth and financial performance,” said Smith.“ANZ’s business strategy has also led to ongoing improvements in the quality of our lending book. Together with the outlook for continued low interest rates and low levels of corporate leverage we now expect the total...

Beat the Banks at their own game and become a  "card-tart" as the banks will call you.  For example: If you have a $10,000 card debt, ring a rival bank and ask for second card.  Suddenly your interest is at say 2.5% for honeymoon period of say 12 months (some are 18 mths).  Your Bank "A" Card is now ZERO. Obviously your aim is to not spend any more on any card until the $10k debt is completely paid off.  Your new Bank "B" Card shows balance of $10k DEBT. DO NOT SPEND even $1 on the new Bank "B" Card.  Yes, even over the phone, the Banks will then send you ten pages of small print that even ex Chairman of ASIC Tony D'Aloisio admitted, he read and could not understand.  It does not say in BIG PRINT: "do not spend $1 on this card until all the Balance Transfer amount is paid...

Aussies just want a fair go, so here are a few tips to ensure all Australians about to sign a Mortgage Application in 2014, are prepared enough to ask their Lender some serious questions BEFORE SIGNING.  Before you sign, tell the Mortgage Seller - these are MY RULES: 1.  Demand the Broker or Bank Manager immediately hand you two copies of Loan Application Form ("LAF") and sign both and RETAIN the second original document for your records.  Ensure the LAF is 11 pages (not the usually presented three pages).  Its a bank scam.  Refuse to hand the signed original over unless there is an ORIGINAL COPY for YOU. 2.  All prospective borrowers MUST receive a phone call from LENDER asking "How much do you earn."  If Lender does not do this after you have submitted the Loan Application Form....then cancel the LAF as a document and process and tell them the reason being "we suspect...

ASIC have systematically and maliciously placed Consumers in harm's way for the past 14 years!  The allegations and submissions show, this was more than negligence.  We need all ASIC Chairmen to be questioned on why they systemically ignored consumer interests, on whose best interests were they acting upon.  Their bank accounts need to be tendered as evidence............................. By ignoring the cries for help from Consumers, the obvious evidence of fraud,  ASIC will condemn thousands of Australians to LOSE THEIR HOMES, whether full docs or low docs.  ASIC has nowhere to run and nowhere to hide.  Every MP in the country needs to get a  grip on this phenomenon. BFCSA Members will take time over Christmas to reflect as a group on how we can change the status quo of the regulatory and regular rejection of consumer complaints against BANKS & ALL LENDERS.  Every Loan has been tampered with, after it was...

For those who may think we do not give Consumers a fair go who actually loved dealing with the Australian Investment and Securities Commission ("ASIC") we have been trawling through the Senate Submissions looking for a "Happy User" of ASIC's consumer complaints experience.  SURELY THERE IS ONE HAPPY CUSTOMER?  We thought we had found one in the COMMENTS section of our useful and very public online FORUM.  But not so lucky......You see the comment was obviously written by an ASIC bod who wanted to have a say in favour of ASIC.   Well the bias is obvious but in fairness again I have decided to BLOG this person's anonymous yet exuberant attempts at give ASIC a ten out of ten.  His/Her name is "Hello."  It quotes two submissions:  # 120 (the other is 196) from the Consumer Credit Legal Service that ASIC pays from time to time to compile reports on...

Mortgage Choice fined over false savings claims DateNovember 28, 2013 - 1:35PM Read later Clancy Yeates Banking reporter  SMH View more articles from Clancy Yeates Follow Clancy on Twitter Email Clancy Mortgage Choice has been fined for false advertising, after it wrongly claimed customers had saved an average of $10,000 over five years by refinancing their home loans. The Australian Securities and Investments Commission today said it had taken exception to television advertisements from 2012 that said customers had saved an average of ''$10,000 over five years.'' Rather than representing real savings by customers, the claim was based on calculations relating to a group of 300 refinancing customers over a six month period, ASIC said. ''No savings of $10,000 over five years had been achieved by any customer at the time of the advertisement,'' the watchdog said. Advertisement It fined the broker $30,600 for the infringements. The chief executive of Mortgage Choice, Michael...