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Flex commission ban comes into effect

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Australian Broker | 07 Sep 2017, 08:53 AM Agree 0
The regulator formally registered the ban today with businesses having until November 2018 to take action
  • David. | 07 Sep 2017, 12:46 PM Agree 0
    Recently one of my home loan clients let me know after the fact that he had bought a new car and arranged finance through the dealer. He is a Government employee with 20+ years in the job and clean credit history. He found out when signing up that he was on an interest rate of a bit over 16% through St George. I looked through my channels and I could have obtained a loan below 7% with the same lender.
    • Anon | 09 Sep 2017, 11:39 AM Agree 0
      Anyone purporting to operate on our behalf (ie "working" in the public "service") that is willing to pay 16% interest on a chattel mortgage in the current market should be finding themselves a more appropriate field of endeavour (you're either too stupid, too lazy or both to be doing ANYTHING on our behalf).

      I am all for weeding out unfair and predatory conduct, but the government operating as nanny is not the answer.

      What next? A limit on how much am "allowed" to sell my house for?

      No doubt, after the "regulator" has laid waste to the finance industry (as it has done to mining and energy), all of the well intentioned dummies will turn their attention to government policy and how they might resurrect the corpse they created.

      Government should be limited to providing a fair playing field and THAT IS IT. Competition and disclosure is sufficient after that.

      BUT that requires about 90% less public servants than we currently have - so, you can see the problem.

      Leave the pricing to competition, not government dictate.
  • Robert Johnson | 07 Sep 2017, 01:18 PM Agree 0
    ASIC is doing an excellent job

    Great news item
  • Dean Lyons | 07 Sep 2017, 01:20 PM Agree 0
    This to me is a very logical and measured approach to protecting consumers from the type of sales people that are not customer focused. Any deal or transaction needs to be a win / win.
  • Anon | 08 Sep 2017, 08:46 AM Agree 0
    But why so long for it to be put in place? Too slow to move, as usual.
  • My word is my bond Broker | 08 Sep 2017, 07:43 PM Agree 0
    Hi David.

    I am sick to death of car dealers lying to clients. It's time they were brought into line.
    If your client does not use the car for more tha 50% genuine business use he SHOULD have been given a UCCC loan. However most car dealers just Mis-sell Chattel Mortgages which are a business loan that does not have the rate on the document. You can ask StGeorge to cancel the contract and refund if the contract SHOULD have been a UCCC contract OR if the comparison rate wasn't disclosed. Most car dealers get clawed back on loan payouts.
  • Scott | 09 Sep 2017, 10:45 AM Agree 0
    This will have a massive effect on Dealer Income, it's a simple change for the lenders either, this will take some time to implement.
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