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Consumer group pushes exit fee ban

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Australian Broker | 04 Mar 2011, 05:00 AM Agree 0
Consumer group CHOICE has supported the ban on exit fees, claiming it will not hurt smaller lenders
  • Twiggy | 04 Mar 2011, 02:27 PM Agree 0
    Could Mr. Lloyd please advise us which lenders are not concerned about the exit fee ban. We need to understand whether these lenders are make the same comments publicly, or they have designed other methods of maintaining profitability
  • Prisco Minichiello | 07 Mar 2011, 09:35 AM Agree 0
    The continuing debate on exit fees seems to be neverending. Here Choice is putting yet an other angle from the point of view of "the Lender" The lenders it seems are naively pushing their own barrow and have succeeded in pulling the wool over the eyes of the consumer group. Reality is , ultimately abolishing DEFs will hurt the consumer. It wont be too hard for lenders to say this is not a big issue for them as I know they will just pass that on to the consumer either directly or through claw back from ther broker and the broker will have to pass it on. This still means favouring the big 4 and flying in the face of competition. I agree there has to be access for the smaller lenders to quality funding and the government must help in this regard but go down the road of abolishing DEFs and it won't matter how much funding the lender has , they still have to get it out to the consumer. If the smaller lender can't be competative , the consumer will go straght back to the big Banks who are smirking in their monopoly control and the consumer as well as the smaller lenders will be the loosers..
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