Aussie suffers further scrutiny

by Caroline Dann05 Oct 2012

Aussie continues to be the subject of intense scrutiny from the national media about its involvement in low doc lending in the pre-GFC period.

Yesterday, The Australian claimed Aussie had made ‘misleading’ statements about whether it was involved in low-doc lending in the pre-GFC period.
It referred to a spokesperson’s comments to Australian Broker Online last week, where they said Aussie was “never involved in low-doc or sub-prime lending.”
The Australian then referred to an interview with John Symond in 2008, where he said low-doc loans accounted for roughly 15% of its business.
When contacted by Australian Broker Online for a response yesterday, the spokesperson acknowledged Aussie did provide low-doc lending, but was “never involved in sub-prime lending.”
He also said Aussie did in fact retain loan applications for its own loans, but in the case of other lenders’ loans, the onus was on them to keep the documents.
“We were never involved in fraudulent activity,” added the spokesperson.


  • by Broker 5/10/2012 10:56:52 AM

    What's the big deal? I shred paper work on a daily basis, doens't mean i am trying to hide anything. Could just mean I run a soft office. The contraversy is over rated.

  • by Mark Hewitt 5/10/2012 11:02:25 AM

    I agree Broker, this is just a media hyped beat up.

  • by ozboy 5/10/2012 11:10:07 AM

    It pay to ask! Unless your asking Aussie. Why should banks have it all their own way? When you can shred your way out of it.