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UK fraud: Blame the borrower, not the broker

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Australian Broker | 24 Aug 2012, 08:00 AM Agree 0
You've heard enough of low-doc fraud in Australia, so here's a bit of schadenfreude relief: the UK is a lot worse, and it's not the brokers who are to blame
  • Julia Swanee | 24 Aug 2012, 03:01 PM Agree 0
    Looks like the UK has upheld the long & sound tenet of 'Buyer Beware', especially pertinent to borrowers obtaining loan products. In Australia, however, this sound tenet has been skewed by this current Federal Gov. to the nanny-state version 'Banker/Broker Beware'. Flawed new 'Responsible Lending' legislation has created a nanny-state litigation environment and reduced/negated responsibility of borrowers to ensure that they can/will repay a loan. What borrower does not understand that a loan needs to be repaid? The legislation needs to be reworked from the current nanny-state (' I'm the victim borrower') version and be renamed 'Responsible Borrowing' to create greater borrower accountability in relation to repaying a loan.
  • Vic Broker | 25 Aug 2012, 01:20 AM Agree 0
    The client will apply for a loan through a broker and obtain with the bank's approval and funding. Then 8-9 months later the bank will put the blame on broker should the borrower fails to make the repayments.Simply unjust!
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