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ASIC sinks Melbourne mortgage broker

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Australian Broker | 20 Dec 2011, 06:00 AM Agree 0
ASIC has scrapped the credit licence of Melbourne-based brokerage Star Aliiance Financial Services, and permanently banned its director
  • WhistleBlower | 20 Dec 2011, 10:05 AM Agree 0
    Pity ASIC can't do things like this to Banks - A chap I was talking with Friday was advised by his bank, to pay his stamp-duty costs via credit card.... on a mortgage with a 97% LVR (LMI Inc)

    Banks, ya gotta love the power they have.
  • JTFP | 20 Dec 2011, 10:17 AM Agree 0
    I also had an experience where a banker suggested to a borrower that they had no children..when one ran in the room calling Mummy mummy..OMG!!!!
  • Wayne | 20 Dec 2011, 10:20 AM Agree 0
    Seems this guy got what he deserved. As for Whistleblower's comment - can't agree more. When Aussie Banks secretly borrow billions from the US Fed bail out fund back in 2008 and never alerted ASIc, ASX, APRA or their shareholders it just goes to prove they are a law until themselves. And when the Fed was finally foprced by Congress to name the banks they put up $7 trillion for, lo and behold, our big AAA rated banks were among them. But hey their safe as houses - yep.....
  • Sally | 20 Dec 2011, 10:41 AM Agree 0
    An employee of one lender told me that they HAVE to try to sell a $20,000 credit card to every customer they see. So much for Responsible Lending.
  • Patrick | 20 Dec 2011, 10:41 AM Agree 0
    Whistleblower is not quite right. Banks are now also required to hold an ACL as a credit provider and could be fined or required to enter into enforeable undertakings and theoretically banned etc etc. The issue is, as demonstrated by the light treatment of banks involved in providing product to Storm Financial, "Does ASIC have the will to take on large corporates, their smarmy rhetoric and their army of lawyers".
  • David P | 20 Dec 2011, 10:49 AM Agree 0
    Hip Hip Hooray !!!
    Well done ASIC. Keep up the effort to clean up our industry so more Australian families can benefit from the services of Finance Professionals.
  • PeterT | 20 Dec 2011, 11:13 AM Agree 0
    In an interview last week the client told me the branch would giver the the money she needed for her home. She enquired to the repayments but the branchee avoided the question. Eventually it came out that the repayments would be more than her salary!
    ASIC need to look closer into what the lenders are doing. My understanding is that they only come under NCCP in 2012.
  • Hasmukh Lal | 20 Dec 2011, 11:14 AM Agree 0
    Banks always maintain power over everyone. During the GFC in 2008 they won the support of the government - taxpayers Guarantees. Currently if one looks at how the courts appoint judges and where the judges have spent most of the professional practice is in a big law firm which gets bulk of the business from the Banks. Obviously the banks have more legal needs in providing and maintaining the loans and taking action when necessary for recovery. Thus maintaining independance is going to be hard. People gets suck in with the system which is obviously run by people behind huge $s ie "The Banks".
  • ozboy | 20 Dec 2011, 01:58 PM Agree 0
    Not sure how this turned into bank bashing, it seems to be a sport for some. It is comforting to know ASIC are out there and following through and as with most things people will always think they could do it better (perhaps "differently" is a better word). In relation to some of the practices listed above undertaken by banks I hear of these sots of things being done by brokers as well. We, as a group, are not as squeaky clean as some would like to believe, however I prefer to focus on what I do as apposed to wasting time and effort on others. If ASIC are out there doing their job I have to wonder why compulsory MFAA membership is even being discussed let alone enforced.
  • Fair Complience for All | 20 Dec 2011, 03:43 PM Agree 0
    I spoke to a friend of mine who works for one of the majors, her role is to do mortgage loans and meet the branch targets. When we compared what us brokers do in regards to NCCP she was amazed, she is not even liecence or a credit rep, but she loved the free trips to bali she she gets meeting targets. We want the Bank and staff members to be liecence or credit reps and to through same compilence as we brokers. I had deal declined because these clients had 12 late payments on their refinanceing statements, the lender would not except them, the clients had a payment dd timing issue which they did not attend to it, but the bank was happy to charge the late payment fee. The clients went to a major lender and got their loan approved because the branch lender did not show the bank statements for rfinancing. Fair complience for all.
  • ozboy | 21 Dec 2011, 09:01 AM Agree 0
    Fair Compliance for All, report it to ASIC that would be the first step in Fair Compliance for All. It is really easy for people to complain but it is harder to actually do. Time to do!
  • Chris | 04 Jan 2012, 10:51 AM Agree 0
    Irresponsible and un-regulated lending has caused all the problems in the UK over the last 3 years. With this adding to the economic problems, meaning most lenders do not (or cannot not) lend now.
    Unscrupulous lending will cause this in Australia, sales targets should be audited and accountability held by the company allowing irresponsible lending to continue.
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