Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

ASIC review uncovers 'weaknesses' in debt consolidation industry: Gadens responds

Notify me of new replies via email
Australian Broker | 19 Jul 2013, 08:00 AM Agree 0
An ASIC review of the debt consolidation industry has raised concerns over compliance, with leading law firm Gadens telling brokers to 'review their processes and procedures'
  • mac | 19 Jul 2013, 10:53 AM Agree 0
    We all know this part of the industry is a dirty game but if someone is about to go down because of excess personal debts which could result in them losing the family home anyway ASIC needs to be clear that they are not saying the consumer shouldn't be allowed to make that dirty deal as a last chance get out of gaol card then hopefully they can refinance back to main stream a few years later. This is the crux of the problem with NCCP it assumes "all" consumers are stupid. Where is the freedom of personal choice in our society.
  • Daniel Blaine | 19 Jul 2013, 11:27 AM Agree 0
    Again another example of ASIC focussing on minor issues while significant matters go unattended. ASIC love this stuff as it gives the appearance of doing something and justification for their existence. Property spruikers go about their business as usual, serial coy director bankrupts rise from the ashes and coys go out of business today & start up again tomorrow. What is the response from ASIC - "we can't do anything - they have filed all the correct paperwork. Anyway we're too busy chase some poor broker or planner regarding file notes!"
  • Jeff | 19 Jul 2013, 11:33 AM Agree 0
    So in essence they are saying let the client go broke, and have to sell their family home now; to avoid them having to extend their loan term, and possibly have to sell it in 20 years time - clients will be rapt.
    Bottom line is they want us to do the business, and have us to blame on the odd occasion where it doesn't work.
    Gradually getting rid of our industry - but be careful what you wish for.
  • SIDBROKER | 19 Jul 2013, 11:55 AM Agree 0
    What is the point of ASIC. They only tackle small problems with small business and arn`t capable it seems on stopping price fixing with the petrol companies or keeping the banks to upkeep the regulaions with NCCP. There are two sets of rules at least. Whats the point of ACCC they do the same. What about the reserve bank, to slow to drop rates and to quick to increase them. Time for massive correction with these three instutitions I say.
  • Papery | 19 Jul 2013, 12:53 PM Agree 0
    I too hate the copious amounts of file notes & justifications for what we do & why we do it. I agree that most of us do the right thing & a great job. I think all ASIC want is too make sure we cover our arses in the event that some smartypants decides they want to have a go in the future & pick the Broker as the easy litigation target.
  • Steve McClure | 19 Jul 2013, 01:10 PM Agree 0
    4 years down the track, Regulation 23 still exempts retailers who engage in credit activities at the point of sale from the requirements of the NCCP Act. The credit card provider isn't exempt, but they still dish out debt virtually on a low doc basis. Motor dealer finance managers also don't have the same obligations as brokers in regards to consumer regulated contracts. So it is very likely that the debt we are trying to responsibly manage and resolve for the client, wasn't responsibly obtained in the first place. Is a solution in part not blindingly obvious?
Post a reply