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NEW POLL: Is it time for the NCCP to be reviewed?

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Australian Broker | 02 Feb 2016, 07:00 AM Agree 0
Are consumer protection laws failing to protect the consumer and the broker? Have your say in our new online poll now.
  • Broker | 02 Feb 2016, 11:08 AM Agree 0
    Quite possibly but hey, I am only guessing, as a few years back I opened the file on the website and it was only 514 pages in its entirety...

    I laughed, closed the file and to date I have never read a page of it - but somehow all my files that are randomly audited by my aggregator are 100% compliant, my clients continue to be happy and since 2002 my COSL complaints equal zero.

    Umm, I don't think it adds much value to anybody!
    • Steve McClure | 04 Feb 2016, 12:33 PM Agree 1
      Which proves it is working well. Legislation isn't there to trick us or impinge when we do the right thing. Your processes just change a little. But, if you are BMW Finance, Esanda Car Dealer Finance or some cowboy low doc writer, it bites you hard. Its a fact, that without legislation, the number of people losing their houses, goods and livelihoods is far greater. I'm sure many lenders over interpret it, but look at the hell hole that America became due to poor regulation.
  • | 03 Feb 2016, 09:54 AM Agree 1
    I don't think so. Many clients are usually too bullish for their own good so some restraint is needed. In addition, like all industries, there are some brokers and bank staff that are also this way and don't worry too much about the the client... Just their KPIs or commissions. Yes a review is needed if you must, but only to fine tune those areas that are a bit "clunky" in operation and/or efficiencies.
  • | 03 Feb 2016, 11:25 AM Agree 0
    Yes it needs a complete overhaul.
  • TimH | 12 Feb 2016, 09:43 AM Agree 1
    When NCCP was introduced there were cries of if it is not broke why fix it from many within the industry. The above comments show both sides of this.
    "Broker"states he has continued doing what he has always done and still passes audit. I suspect the vast majority of us would be in the same boat.
    "Steve McClure" says its the lenders and cowboys that are being bitten by NCCP. I'd probably enhance that by saying the cowboys working for the lenders. I agree that more protection from these people can only be a good thing.

    The reality is you can still satisfy most clients requirements from the vast panel of lenders most brokers have access to, a lot of the cowboys and shonks within the industry where driven out when NCCP first came in and are still being driven out now and being a broker is still a good profession that can be financially rewarding.

    Does NCCP need an overhaul? Not in my opinion.
  • Aussie broker | 15 Feb 2016, 11:50 PM Agree 0
    If a borrower can't afford the repayments at the beginning of a 30 year term how will they afford them with the shorter term left after having had an interest only period? Unless they have other debts that are close to the end of their term or one borrower is temporarily off work it's hard to see how they could. Having said that, I have never once had a client request an interest only loan because it will be more affordable. It has only ever been a client purchasing what will later become an investment property, who wants to save into an offset account the deposit for their next home while maintaining full deductibility of the original loan. In this instance it makes complete financial sense, should only be offered to clients disciplined enough to follow through and should always be possible without hindrance from the lender.
  • Denise Brailey | 18 Feb 2016, 02:54 PM Agree 0
    Sadly, consumers are indeed being "done over" by the lenders' appetite for "approvals" of low doc lending. I see the tragic stories on a daily basis. The problem is the banks have engineered the faulty product and most customers are told its a low doc "mortgage." Consumers have only an old fashioned idea of what a mortgage is and are not told its an "interest only loan." Those I have spoken to have no concept that if they paid for 30 years they would never own the home. The product is being sold to the vulnerable through clever marketing techniques as suggested by the lenders.

    The NCCP was a good idea in theory but how many cases have ASIC taken to the CDDP for prosecution against the lenders who approved the loans? None to date. ASIC has rendered these pieces of legislation as being impotent through lack of investigation into consumers' daily and very serious complaints to the regulator. Laws being parked on dusty shelves with zero enforcement of law can only bring grief to the entire banking and finance industry. Consumers have been left unprotected for almost two decades.
    • | 23 Feb 2016, 10:55 AM Agree 0
      Denise, pardon any ignorance, but what is the CDDP? The only credit related reference I've seen of it, is in your comments. ASIC has wide powers and their findings have seen successful prosecutions. Some (mentioned here) are very recent and include banks. Penalties have been imposed and there is not a lender or broker in Australia that wants to cross ASIC. Every lender highlights ASIC & NCCP in their training & policy these days. If you were aware of policy changes and the number of lenders ceasing Low Doc, you'd hardly call it an appetite. Happy to consider your opinions, but rather than the familiar generalisations, what are the specific cases that ASIC has fell down on or lost?
  • SEQ Broker | 23 Feb 2016, 05:58 PM Agree 0
    All I know is my customer who is currently paying 5.05% can not refinance to 3.98% because he has a phone bill and pays health insurance (which I included as a discretionary). The lenders are so afraid of being held to account by ASIC that they are now saying to my client that he can not refinance and save $640 per month because of discretionary a discretionary expense. The fact he pays more now and pays on time is irrelevant. So how is that protecting my client. The NCCP / ASIC and APRA have themselves to blame for my client wasting $640 per month in additional interest - in other words they are liable in my opinion for my clients loss. Thank you regulators but the NCCP needs a giant rethink when it is no longer protecting but costing consumers.
  • user | 02 Mar 2016, 09:03 AM Agree 0
    The same people that want the NCCP overhauled will be the same people to cry when they suddenly "can't afford the loan" and blame the lender.
  • Chris Szigeti | 02 Mar 2016, 11:46 AM Agree 0
    Yes after 6 years it is time to have a review and work out what is good and bad with the NCCP and make it more workable to all parties. I would say over all it has worked but many aspects need clarification - also the exceptions need to be looked at so everyone comes under the act.

    Lets have a meaningful discussion with all the stake holders involved this time so we have legislation that works for us all
  • Denise Brailey | 03 Mar 2016, 12:02 PM Agree 0
    No need for an overhaul. The NCCP needs to be taken down from dusty shelf and used by the regulator. What is the point of having laws that lay dormant. The whole point of the effort of legislating for these laws to improve industry practice is defeated of regulator too use to bother investigating the lenders who are engineering products unsafe for consumers and recommending cases against lenders to the CDDP. The finance industry is one of high turnover and continually under fire due to the greed of the lenders. If that problem was resolved things would be so much better for everyone.
  • nccp | 04 Mar 2016, 02:12 PM Agree 0
    NCCP is done just to satisfy regulators , in true sense not practised.

    NCCP requirements can be bent by lender and customer as required. it means nothing .
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