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Aggregators accused of 'restraint of trade'

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Australian Broker | 17 Aug 2011, 07:30 AM Agree 0
Aggregators who restrict credit representatives to dealing with only their panel lenders could be guilty of 'retraint of trade', one lender has claimed
  • Hello | 17 Aug 2011, 11:22 AM Agree 0
    Did no one see this coming??? As if aggregators owned by lenders were not going to be pushed to sell their own products prodominately and therefore force this onto their credit reps. Finance brokers should have retained their independence and become ACL holders
  • WJB | 17 Aug 2011, 11:45 AM Agree 0
    I was a sole trader and now hold a credit license. This is an involved process and if you are a man band well expect triple amount of paperwork in running your company If you are concerned about paperwork well expect more than you can chew.. Beware it is involved and lot more hairy than just stating you should get your own ACL> I am the broker for my compnay and I need now to focus on running my buisness and have credit representives be the brokers.
  • petert71 | 17 Aug 2011, 12:18 PM Agree 0
    I'd also encourage all brokers to obtain their own license. It is a pain to obtain the license but it's not as difficult as the aggregators suggest. You can also outsorce the process for a fee less than $3k to make it easy.
    Ongoing compliance is nowhere near as difficult as the aggregators suggest, even for individual operators.
  • PaulGollan | 17 Aug 2011, 01:49 PM Agree 0

    I have a great deal of respect for Andrew, however in this instance the argument that aggregators or broker firms should expand their panels to include non-panel mortgage managers who offer exactly the same as what is already available though incumbent panel mortgage managers makes no sense.
    Our main priorities are our brokers, our customers and our brand, so it makes no sense to add another mortgage manager to the panel, when we already have 3 or 4 and where the non-panel mortgage lender has the same funders, similar pricing and as stated the same "credit policy".
  • Stephen | 18 Aug 2011, 02:44 PM Agree 0
    I can't believe how many brokers complain about the onerous paperwork involved in holding a licence. It is absolutely not true. You either have a business or you don't. Yes, the days of being a hobby broker are basically gone, but that's a good thing. If you find the paperwork too much, then go work for someone else. The industry will be better off. Aggregators spent a lot of time and money convincing brokers to go "credit rep" do you think they did that for your benefit? I don't think so. The smart brokers got their own licence and will be independent from aggregators and lenders controlling power. Next thing we have to stop is MFAA power going to their heads and letting us be grown ups and run our own business and be responsible for our own destiny. Come on guys, you want people to treat us as professionals, so start acting professional. (and stop whinging)
  • SanityPrevails | 22 Aug 2011, 02:24 PM Agree 0
    I would think it prudent that all aggregators complete necessary due diligence on the prospective lender. It should be considered along the lines of, Are they adding something to the existing panel (pricing, policy, product etc.), do they have the financial capacity to guarantee the broker's entitlement to commissions and finally, do they have sufficent funding to ensure the continuity of all of the above. Trust your aggregator to get this right and not just add someone to the panel for the sake of it!
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