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Exit fee ban a clear failure: MFAA

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Australian Broker | 13 Jun 2012, 06:00 AM Agree 0
The government's exit fee ban has done nothing to encourage lender competition according to one industry figure
  • Lee | 13 Jun 2012, 09:22 AM Agree 0
    It gave lenders an ability to extend or introduce claw backs with "justification" - and i use that term quite lightly
  • MFAA Bad Decision | 13 Jun 2012, 09:24 AM Agree 0
    Well this is certainly a surprise to no-one! What Swan did with exit fees, was for new loans only from when the ban started not on existing loans which would have helped borrowers significantly. Another example of the lack of understanding by this government.
  • Incognito | 13 Jun 2012, 09:24 AM Agree 0
    I was opposed to the exit fee ban and wrote to my local federal member back then.

    Since it's been in though I feel that lenders can no longer afford to get out of line with rates or customers will just say 'switch me'.

    So in the end it's saving me work because the majors are all competitive and my clients stay put.

    I know it's more complex than that, but that's been my experience so far.
  • Ray - Perth | 13 Jun 2012, 10:48 AM Agree 0
    The MFAA is out of touch here. Anyway it is too early to tell. This was a long term action by the federal governement and benefits borowers and brokers. The MFAA again seems to be promoting only the banks side of the industry. No wonder there is a big move to the FBAA.
  • Loz | 13 Jun 2012, 11:28 AM Agree 0
    Are we still argueing its fair to slug consumers with huge penalties for leaving when the lenders funding source fails and pushes their rate up astronomically, see wizard, resimac, adelaide bank, or stops lending..see maquarie, gemoney, rams, paladin.

    The penalities were always unfair and nothing can convince me otherwise.

    Brokers (and I am a broker) just liked having something in place to prevent their customers moving and them potentially lose trail, which meant that they didnt have to work on personal service to have their customers come back to them.

  • Glen | 13 Jun 2012, 11:45 AM Agree 0
    really! a communist government that got it wrong, surprising.
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