Aussie slams ‘shredding’ claim

by Caroline Dann28 Sep 2012

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.”


  • by overthrborderbroker 28/09/2012 9:44:54 AM

    Hmmmmm I thought that even as intermediaries we all had to keep files for seven years before destroying. Have I missed something???

  • by Stephen Dinte 28/09/2012 9:59:40 AM

    As the Chair of the Steering Committee for the Independent Finance Brokers Forum, I have today sent an email to Phil Naylor asking that the MFAA should investigate this allegation and determine if any of the Associations rules have been breached, and if it is proven that Aussie have breached MFAA rules, what disciplinary action will be meted out. Prior to NCCP there was always a legal requirement to retain documents for 7 years (statute of limitations), 20 years for statutory documents and 6 years under tax law. This action by Aussie casts the whole industry in a bad light.

  • by Country Broker 28/09/2012 10:25:14 AM

    This is typical of a misguided press beat up by a paper owned by Murdoch, even if the brokers did shred the applications the lenders must have their copies , I doubt if any directive came out Aussie at all they are not that unprofessional , no broker / aggregator/ mortgage manager is, if the journalist had thought about it they should know the lenders have to keep copies !! I hope Aussie seeks a solution in the courts if they can.