'Grow up', brokers tell class action clients

by Ben Abbott18 Jan 2012

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






  • by Michael R 18/01/2012 10:26:11 AM

    Consumers need to take responsibility for their own actions. This government with the NCCP has put the onus on the broker and lender on lending responsibility. That does not mean that the consumer should not and always be responsible for their own actions. I have always said that a broker & lender can tell a consumer how much they qualify for. But a consumer knows what their lifestyle and spending patterns are, and ultimately what they can afford.

  • by Who can I blame ? 18/01/2012 10:58:30 AM

    Why is it that when the property market slumps, borrowers look for someone else to blame, or simply seek to get out of loan contracts they say someone else should not have given them? And yet, when the property market booms (and they make money) these same borrowers are completely silent? Any investment requires an acceptance of risk and these borrowers took on those risks of their own accord. Accept the consequences people and accept responsibility for your own actions.

  • by Rachael 18/01/2012 11:19:42 AM

    If the lending was brokered or provided according to the regulations in place at the time, then neither the banks, nor brokers, have anything to fear... Class Action? HA! Doubtful...If these are the same people who look to blame others for their own actions, then having the wherewithall to organise a class action is unlikely - Sure they'll engage a lawyer who wants to get on Sunrise, but when they find out they actually have to do something and take part, it will all fall in a heap...