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Audits imminent as motor finance sector gets it 'very wrong'

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Australian Broker | 26 Mar 2012, 06:00 AM Agree 0
ASIC is not far off auditing the motor vehicle finance sector, with many in the sector getting compliance "very wrong"
  • ozboy | 26 Mar 2012, 08:34 AM Agree 0
    Yes have had personal experience with just how bad some of these car yard F&I people can be. Wonder when ASIC will look at the major lenders at a branch level?
  • Country Broker | 26 Mar 2012, 10:40 AM Agree 0
    It is clear from my experience that many F&I people in the dealers have no idea what to do , i believe thate is NO analyisis of what is best for the client or any need analysis , if ASIC do start the audits it will be very interesting to see the results.
  • Steve McClure | 26 Mar 2012, 11:42 AM Agree 0
    Wouldn't surprise me if error rate is 100% - but not all of it due to shoddiness. For example, if the dealership charges a fee (e.g. origination fee), they have to present a quote showing the rate and all fees and get it signed by the borrower even before proceeding with an application. However, the rate from the lender isn't known until it assesses the application's credit score. That's just the start of it. Can you imagine any dealership making a detailed assessment that may prevent a sale? The only way to avoid a conflict of interest under the NCCP Act as it stands, is to remove tied credit providers entirely.
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