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Big Switch sees small finish

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Australian Broker | 20 Feb 2012, 04:00 AM Agree 0
Consumer watchdog CHOICE has closed its controversial Big Bank Switch campaign with only one in 20 registrants potentially switching lenders
  • ozboy | 20 Feb 2012, 10:00 AM Agree 0
    Read between the lines, "not involved in any current switching" and "we believe that group switching has great potential" but not enough for them to be involved. And the reason for that, only 2000 out of 40 000 went on to "have discussions" no they did not actually switch just discussions. Would be interesting to see how many actually took the offer. I would say about 800 of which probably only 500 have settled so far. Just my guesstimate based on nothing more than a few beers, a napkin and 20+ years in finance. No wonder Choice walked (ran?)away.
  • Michael C | 20 Feb 2012, 10:15 AM Agree 0
    A generalised switching operation simply cannot work because it does not address the needs of the individual / family / business. Case by case they require specific individual attention.
  • Skeptic | 20 Feb 2012, 10:34 AM Agree 0

    Well in my opinion this looks like the perfect kind of behaviour ASIC should be investigating Did these consumers really need to switch at all Woe betide any small broker firm that did the same thing I recall Choices comment that Brokers were giving clients 'crap' advice Since there were not too many consumers they could switch may be a public apology to the Brokers of Australia is in order
  • Gordon | 20 Feb 2012, 10:34 AM Agree 0
    Savings of $375 a year or over the life of the loan. Either would hardly seem a reason to switch for. Most clients who approach me to refinance can usually be helped by just getting a better deal with their current lender. I had one recently who was being encouraged to swith by another lender to save $3,500 in interest over 3 years. She came to me to check the offer was sound. However the new lender had failed to inform the customer it would cost over $3,700 to switch. These fees included the outgoing lender, titles office fees and all fees by the new lender. I arranged a transfer to a better loan with the existing lender saving them a similar amount with out the fees. Client and existing lender happy but the I miss out as no commission is paid on retention of business. This needs to be addressed as some brokers would just do as the lender in this case was goind to do and not fully inform the customer just to acquire the business.
  • Keith Bridges | 20 Feb 2012, 10:39 AM Agree 0
    Can you imagine if we as brokers received 40,000 leads, lodged maybe 10,000 applications to then convert less than 1,000. We would have our accreditations stripped from us for clogging up the banks' processes. Is it any wonder Choice has walked away, and have a feeling there may have been a large number of complaints just to make Choice question their involvement.
  • Rach | 20 Feb 2012, 12:30 PM Agree 0
    Was always going to be an enormous crock of rubbish - A sheer waste of cusotmer's time - they could have just gone to a Licenced Broker and obtained a real result - My questions - Where's the MFAA, where's ASIC ???
  • Wes | 20 Feb 2012, 12:45 PM Agree 0
    Watchdog ? How does an organisation who profits from a brokerage transaction get called a watchdog ? A watchdog is an independent organisation who advocates not participates. Congratulations you made a buck and got some publicity but you are no watchdog Choice - and by the way, apologies in order for bringing our industry into disrepute. breathtaking considering the comments about broker advice !
  • JB | 20 Feb 2012, 04:37 PM Agree 0
    I dont have a lot of faith in Choice after looking for white goods thier recomedations were out of whack with actual consumer recomendation on the net if I'd taken Choice recommendation I
    would not have purchased some of the items I am now very happy with.
  • Damien | 20 Feb 2012, 10:12 PM Agree 0
    Choice should stick to what Choice does best, comparing dishwahing detergents and the like.
  • David | 21 Feb 2012, 07:33 AM Agree 0
    Choice are a disgrace. Politically compromised and structually corrupt. They happily criticise anybody taking a commission irrespective of whethere the customer is getting a good deal or not yet they happily take commissions themselves. So hypocritical. Those customers paying the commissions to Choice should rightly ask "why"? Further, I recently noticed that I am still being charged $22.95 a qtr by Choice for a online subscription I have not used for years. I simply had forgotton about it. I have never received a receipt or a renewal notice from Choice yet Choice are now demanding that Financial Planning clients should "opt in" every 2 years for their FP service. I repeat: Choice are a disgrace and a joke!
  • Pom | 21 Feb 2012, 09:10 AM Agree 0
    I actually had clients go and see these cowboys and they tried convincing them to refinance regardless of the costs involved. The actual broker that met with them didn't even mention REGISTRATION OF MORTGAGE FEES or DISCHARGE FEES; my client had a loan split 3 ways and would have incurred 3 discharge fees (AT A COST OF $400 PER LOAN). Absolutely disgusting advice and certainly not in the best interest of "THE CLIENT"
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