Aussie hit back at claims made yesterday in The Australian, in which the lender was accused of destroying documents in the pre-NCCP period.
The Australian claims Aussie instructed brokers to destroy loan application documents in the lead-up to the GFC.
It then made the link between the shredding of documents and the general accusations of low doc fraud during the period, where shredding of documents could have been a key concern.
When contacted by Australian Broker Online for a response, a spokesperson said the story was “totally misguided as Aussie was never involved in low doc or sub-prime lending.”
He admitted Aussie did routinely destroy loan applications once they had gone to the lender, and were approved.
“It was the obligation of the panel lender to retain the completed customer application form and provide such copies to customers upon request. Aussie was under no obligation to retain the records, as they were kept with the lender,” he said.
After the NCCP rules came into play in 2010, requiring all lenders retain such documents, Aussie changed its rules, he said.
“[Documents] will be retained for a period of seven years after the loan discharges. Aussie is able to provide copies of the loan application files to customers upon request.”