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Credit union slams Big 4 for misleading consumers

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Australian Broker | 23 Apr 2014, 08:30 AM Agree 0
The Big Four should be forced to disclose parent relationships with smaller banks to consumers, who are being duped by illusions of competition, said a major credit union
  • Stephen Sillett | 23 Apr 2014, 10:02 AM Agree 0
    CUA should concentrate on becoming more competitive and this wouldn't be an issue. There is a reason the Big 4 dominate - consumers are more informed today then ever before.
  • James | 23 Apr 2014, 10:18 AM Agree 0
    CUA are right. The Big 4 have been allowed to buy up any meaningful competition and its not emphasised enough as to who owns who..... The next step of disclosure would be showing how much commission the lenders receive off every LMI policy.
  • Coast Broker | 23 Apr 2014, 10:54 AM Agree 0
    I am a member of Plan Australia and have never had an issue explaining to clients how the NAB group owns Plan Australia along with 2 other Broker Groups. I always make a point of explaining the ownership of Plan Australia and if anything it helps how my clients view me and my business. Clients realise that I am still an independent broker with my own brand customer service standards so have never had an issue where a client does not want to deal with me. Maybe it is more the case of some Brokers having sour grapes with the Majors. By the way I am not a big supporter of NAB or Homeside products and this does not effect my business in how Plan Australia management view my business.
  • Michael | 23 Apr 2014, 11:06 AM Agree 0
    I believe, this is just a way the CUA are crying out for market share. If ASIC do not believe there is a case to answer, then let it go. End of story
  • Positive Broker | 23 Apr 2014, 11:10 AM Agree 0
    and there is no way "more regulation is a good thing".
  • Bottom Line | 23 Apr 2014, 11:13 AM Agree 0
    Nothing the big 4 do is ever wrong; according to all our regulatory public servant.
  • Shannon Ingram | 23 Apr 2014, 12:07 PM Agree 0
    Stephen I don't feel that is a fair comment. CUA has it's issues on the processing and policy fronts but has a 3 year fixed rate at 4.89% or a 5 year rate at 5.50% with a 100% offset account. None of the big 4 have anything like that. They also don't discriminate on LVR for pricing so they have a few different products that are going to suit certain clients. Certainly not for your bigger loans, but they are extremely competitive in the space they do play in.
  • Stephen Sillett | 23 Apr 2014, 12:24 PM Agree 0
    Shannon, you mentioned policy and processing, if CUA get these right they are right in the market. These 2 areas are part of the competitiveness that are holding CUA back. Interest rate is irrelevant if the loan is not approved
  • Papery | 23 Apr 2014, 12:26 PM Agree 0
    Most comsumers dont think too deeply when considering who owns the company when making a purchasing decision (Yes... some do).

    The primary drivers are cost, speed, & actually getting an some cases branch & internet presence & perceptions of trust. Doesnt matter who owns the business...if you are not competitive you are not competitive. And many consumers are very wary of small & less known privately owned business (especially if they are not considered Australian)...they tend to falter first...
  • Old Broker | 26 Apr 2014, 07:38 AM Agree 0
    Wow we have an offset and all is ok , how about repayment holidays great for SE applicants in seasonal or holiday times to help with their cashflow, How about taking a more open view on investors tax position on serviceability of loans, also why dont CU be a little open on their limited funds available for a special product that seem to suddenly run out when its time to submit a loan. CU are great for competition the public however are caught on that all most of the time when they need the service and the branch network not many will be left in the dark with the major 4. Also whats the deal with expensive LMI premiums or is that another thread ?
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