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'Grow up', brokers tell class action clients

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Australian Broker | 18 Jan 2012, 04:00 AM Agree 0
With brokers now subject to responsible lending obligations, they think borrowers should be obliged to do a little more responsible borrowing
  • Michael R | 18 Jan 2012, 10:26 AM Agree 0
    Consumers need to take responsibility for their own actions. This government with the NCCP has put the onus on the broker and lender on lending responsibility. That does not mean that the consumer should not and always be responsible for their own actions. I have always said that a broker & lender can tell a consumer how much they qualify for. But a consumer knows what their lifestyle and spending patterns are, and ultimately what they can afford.
  • Who can I blame ? | 18 Jan 2012, 10:58 AM Agree 0
    Why is it that when the property market slumps, borrowers look for someone else to blame, or simply seek to get out of loan contracts they say someone else should not have given them? And yet, when the property market booms (and they make money) these same borrowers are completely silent? Any investment requires an acceptance of risk and these borrowers took on those risks of their own accord. Accept the consequences people and accept responsibility for your own actions.
  • Rachael | 18 Jan 2012, 11:19 AM Agree 0
    If the lending was brokered or provided according to the regulations in place at the time, then neither the banks, nor brokers, have anything to fear... Class Action? HA! Doubtful...If these are the same people who look to blame others for their own actions, then having the wherewithall to organise a class action is unlikely - Sure they'll engage a lawyer who wants to get on Sunrise, but when they find out they actually have to do something and take part, it will all fall in a heap...
  • Sceptic | 18 Jan 2012, 11:25 AM Agree 0
    "a broker & lender can tell a consumer how much they qualify for". True Michael, however there are some lenders (I have seen the applications as a FP auditor)where children are "lost", average income "doctored" or worse, turnover instead of taxable income used, and worse, simply false income figures entered. I recall one appln where entered as SE, and reality employed individual for 28 yrs!!! Yes, it does come down to what monthly repayment you are comfortable paying, but when required "surplus" is similar to the base age pension, I think lenders' guidelines need serious reviewing. Some, less-educated, people really have no idea what they can afford, and simply pay commitments and live on the rest. Here is a radical idea - wind the clock back - repayments to be maximum one weeks gross, minimum one weeks net - affordability for many would be screwed, but might bring property prices back to more realistic levels!!!
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