Brokers may now be subject to responsible lending obligations, but as Australian BrokerNews forum makes clear, brokers think borrowers should be obliged to do a little more responsible borrowing.
This week, Australian Broker reported that a class action was being mounted that would pit up to 300,000 struggling mortgage clients against the major banks who extended them credit.
However, brokers have been incensed by the move - and have told these clients to 'grow up'.
Jaime (16 Jan 2012 01:59 PM) was ruthless in his denouncement of these borrowers.
"At what point in time will borrowers accept responsibility for their own actions? They enter into a loan facility bright eyed and bushy tailed, full of enthusiasm encouraged by achieving the “Great Australian Dream”, often without having done any of the hard yards," he wrote on our forum.
"Wake up to yourself people; if you borrow money, the key word is “borrow” and you are required to pay it back under the terms and conditions that were documented before you signed up and took delivery of the dream - pay the bill or suffer the consequences I say," he concluded.
JohnnyWakko (17 Jan 2012 09:28 AM) said the action was a classic example of the 'Nanny State'.
"Always someone else to blame. The old saying: 'Banks are great when they give you money, but not when you have to pay it back." 300,000 people need to grow up," he said.
Donut (17 Jan 2012 07:33 AM) brought the debate back to the liability of brokers these credit decisions.
"I am interested in how many of these so-called 300,000 borrowers had the loan organised by a broker," he said. "I can't imagine, under NCCP, that there would be too many brokers that would allow first home buyers to overcommit. I know I wouldn't and I don't know a broker that would.
MFAA CEO Phil Naylor was of the same opinion, with Australian Broker reporting today that the success of any class action was unlikely due to the advent of responsible lending legislation.
What do you think? Have your say on the Australian BrokerNews forum.