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ASIC should crack down on bank branch managers, association says

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Australian Broker | 27 Aug 2014, 08:15 AM Agree 0
An industry association has called for ASIC to apply the same scrutiny to bank managers as it does to brokers
  • Rodney Fox | 27 Aug 2014, 09:04 AM Agree 0
    I totally agree that branch managers should be regulated or monitored regarding their credit and lending activities. I've seen bank managers being extremely cavalier when it comes to what they will lend. While a broker application would be laughed off as the proposed loan would be considered reckless. Bad credit activities of branch managers is not new and is common place. I wish I could name names!
  • Steven | 27 Aug 2014, 09:06 AM Agree 0
    I couldn't agree more, I've been in the industry for 17 years and I have had clients obtain finance from branches when I clearly could not help them as they were either on Centrelink benefits or earning cash and not declaring their income to the ATO. I can think of 4 bank branches off the top of my head who conduct in fraudulent activity. It's time that a level playing field is applied.
  • QLD Broker | 27 Aug 2014, 09:08 AM Agree 0
    I totally agree with the FBAA. Some of the things that we have seen bank managers and bank loan staff do, the home loans they have approved, there is no way under NCCP we would have been able to do the same thing. It is totally incomprehensible that brokers have to follow NCCP guidelines and go through so many processes and yet bank staff can do whatever they like! Banks should have to do prelim assessments, quotes, credit proposal disclosures just as we do.
  • Mitch | 27 Aug 2014, 09:09 AM Agree 0
    yes, about time, I scratch my head in disbelief with some of the stories and situations I have seen some would be clients in
  • TJA | 27 Aug 2014, 09:23 AM Agree 0
    Why they haven't been under the microscope already, is unbelievable they have DUA, and some, not all abuse this majorly. I had one couple the guy had a bankruptcy so the bank lender put all income under the female. This was the worst instance as there have been others. So about time.
  • Oscar Hvala | 27 Aug 2014, 09:33 AM Agree 0
    Yep....I had several loans taken from me that under NCCP or the bank's own policies could not be done. For example, a person with 3 defaults, 2 of which were unpaid (total of about $20k), applied, fully approved and docs signed in 1 week!! Customer called me just to "stick it" to me and my customer feedback was "0". I can't say which bank is responsible in this case, but to me on the surface, this sounds, smells and feels shifty if true !! All other lenders and the bank itself advised this was impossible. Needs closer scrutiny!
  • Denise Brailey BFCSA (Inc) | 27 Aug 2014, 09:33 AM Agree 0
    Yes indeed a crack down is needed at those at the top of the Banking Industry. Read Moodys reports on ABC. Alarm at 43% interest only loans....we know these are mostly pensioners but heads of banks permitted NO INCOME CHECKS, no verification of anything intentionally trying to shift liability and blame on to the sellers and borrowers. Not on in this country surely? Time for a clean up. Yes banks have been out selling the sellers by direct lender, buffers and re-financing. We have the documents and can see what is occurring.
  • VicBroker | 27 Aug 2014, 09:38 AM Agree 0
    If we had implemented the similar methods the bank staff practice, some of us would have ended in jail.
  • Nathan | 27 Aug 2014, 09:44 AM Agree 0
    Couldn't agree more with the above comments. I have lost count with the amount of clients who are not even close walk into the local branch and get approved. Mainly sub 80% but it has also included LMI deals, they clearly do not stick to their own policy. There are 2 major banks that come to mind, but would prefer not to say in an open forum.
  • MYRR | 27 Aug 2014, 09:47 AM Agree 0
    The banks know what their branch lenders get up to - Regional Managers keep quiet because they want the sales and senior management's main concern is to quietly terminate those staff members and then ensure staff fraud is kept out of the media.
  • Chrys_E | 27 Aug 2014, 10:04 AM Agree 0
    This is a long time coming in my opinion. We deal with Bank Managers all the time as brokers and have been under cut but poor advice and a seemingly 'helpful' Bank Manager or bank staff member and found out later that they haven't had the same level of disclosure in their application to the bank and our clients have ended up coming back to us to play Mr. Fix It. I really feel like there needs to be the same best practice rules for everyone. We are hear to service clients and undercutting each other is unnecessary. Especially when we find out later that they haven't approached the loans and finances from a best practice stand point.

    In saying that I have met a lot of really helpful Bank Managers and bank staff members in my time and the few that aren't doing the right thing really are ruining the industry and PR for the others.

    I hope ASIC comes in and gives them the same guidelines as us Brokers have
  • Kamran | 27 Aug 2014, 10:15 AM Agree 0
    Can't agree more. Do ASIC believe the bank internal regulations are sufficient? The same way they do for financial planning?
  • Ed Ridge | 27 Aug 2014, 10:18 AM Agree 0
    Yes we all agree and yes we all know it goes on BUT Mr White what is the FBAA as my industry representative doing about this inequality. Where is the submission to ASIC outlining your concerns? What lobbying are you doing to get this inequality addressed? It's easy to come out and say what we all know, how about you let us know what the FBAA is doing to rectify the situation.
  • Joe Broker | 27 Aug 2014, 10:20 AM Agree 0
    But isn't that just how the big banks want it?
    Have the brokers flooded with compliance related paperwork, amongst other things, whilst they're free to go about their loan writing business.
  • Country Broker | 27 Aug 2014, 10:23 AM Agree 0
    I agree with these comments , not just managers in regards to financial advice but also their home loan activity.
    The Mobile lenders also need to be included as well !
  • SIDBROKER | 27 Aug 2014, 10:27 AM Agree 0
    Relax guys. Its not going to happen. ASIC will not take on the banks end of story.
  • Julia Corderoy | 27 Aug 2014, 11:47 AM Agree 0
    Hi everyone, Julia Corderoy here, journalist for Australian Broker.

    This is clearly an issue that resonates with brokers and I would love to hear your personal opinions and experiences - whether you agree or disagree with Mr White - and what you would like to see happen.

    If you are happy to provide your insight for an article, please contact me on (02) 9439 4566 or email me on julia.corderoy@keymedia.com.au.

    Hope to hear from you, and lets keep up the open discussions!

    Cheers,
    Julia
  • Robert Hunter | 27 Aug 2014, 01:06 PM Agree 0
    If there is so many people in the industry that have seen this first hand occurring in banks, I ask this question! WHY HAS THIS BEEN ALLOWED TO GO ON WITHOUT INQUIRY? surely between everyone that says they have seen or actually been made participate in fraudulent activity, there should be enough evidence to warrant a Royal Commission into the banking industry.
  • JH Broker | 27 Aug 2014, 05:16 PM Agree 0
    The Lenders should do away with the branch model and give brokers a broader range of products and options to provide the client, so we can offer the clients we bring to the lender a more holistic service.
  • Denise Brailey BFCSA (Inc) | 27 Aug 2014, 07:35 PM Agree 0
    Spot on. ASIC know whats going on. I have had a few top level meetings - "yes banks were the engineers." Look at the CEO bonuses each year. Then $42 million exit bonus after 5 years. We all wish. ASIC know the banks are self regulated and say "not our problem."
  • Denise Brailey BFCSA (Inc) | 27 Aug 2014, 07:38 PM Agree 0
    Mobile lenders are also protected species. Rules for Bankers and staff and rules for everyone else. The sellers are also victims of these loans. We see the carnage. No-one realised until now what the Bankers were really up to. ASIC would have closed door discussions but not say one word to the media. We all need an ex retired High Court Judge - as Royal Commissioner. Someone with integrity and non aligned with Bankers.
  • Denise Brailey BFCSA (Inc) | 27 Aug 2014, 07:48 PM Agree 0
    Indeed you should all as brokers be telling your stories to Julia.
    Its very hard for people to group together, but in doing so the truth tends to ooze out and float to the surface. This is your chance.
  • SEQ BRoker | 27 Aug 2014, 08:09 PM Agree 0
    Same as brokers. IMO a very high percentage of branch managers would be honest Joe's. Then there are some that are not.I am helping a client who's application was changed by a bank branch manager so that he serviced on a calculator for a loan he could not afford and where the risks were not explained to him. he lost 2 investment properties and his family home - because of a branch manager.
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