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Exit fee ban ups clawback pressure

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Australian Broker | 28 Mar 2011, 06:00 AM Agree 0
Brokers are under increased pressure to ensure customers are put into the right loan the first time, following a ban on exit fees last week
  • Chris | 28 Mar 2011, 01:12 PM Agree 0
    Churning the same loan is no good and we are OK with clawbacks here BUT great for Slater to say brokers 'receive a clawback on the last deal but get an upfront on the next' - the broker who may has provided the correct loan type and structure at the start and kept the customer relationship has completed 2 or 3 or 4 loans for 1 income - not fair mate - would you be happy with this AND again if the customer decides to sell and repay the loan ie. not refinanced/churned of their own volition, it should be at customer cost not the brokers - this is just yet another way that Banks will use Gov't policy (by the stupid - onya Swanny & Gillard just buying votes again - and its a GST free financial transaction otherwise they would have a tax on it too - then see if they would have outlawed the DEF) to increase their revenue. Brokers and may be even Banks may start charging a fee upfront which is effetively a provision for or a deferred clawback charge anyway. Law of business - the business owner is entitled to cover its costs....the Banks are controlling the aggregators (toothless tigers in these events) and the brokers.
  • Broker | 28 Mar 2011, 01:57 PM Agree 0
    I have been including claw back provisions in my FBC's for 18 months now, and if you value your time, you will too. How can you budget your business cash flow accurately, if you leave yourself wide open to such unexpected events?
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