BFCSA Blog

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form
Investor home loans fall to near two-year low in February Australian Financial Review Apr 12 2018 6:05 PM Michael Bleby   Investor home loans fell to 35.9 per cent of all housing credit in February, the lowest level in nearly two years, as regulator-driven banking curbs held back loans on investment properties. While investment loan commitments rose 0.5 per cent from January to a total $12 billion, this marked a 5.9 per cent fall from the $12.8 billion figure a year earlier, official figures on Thursday showed. Over the 12 months to February total investor loan commitments fell 0.7 per cent from the same period a year earlier to $146.4 billion. The weakening figures for investor borrowing – along with owner-occupier loan volumes that declined for a third month – were likely to reinforce the decline in prices in the country's two largest cities, JP Morgan economist Henry St John said....
Last modified on
Hits: 121 0 Comments
Rate this blog entry:
0
Continue reading
Westpac crackdown on lending standards The Australian 12:00am April 12, 2018 Michael Roddan   Westpac has launched a crackdown on declining lending standards in the $1.6 trillion home loan sector, and will start grilling customers on their spending habits for everything from pet insurance to Netflix subscriptions. From mid-April, the second-largest bank in Australia will ask brokers to collect more detailed information on borrower expenses, including media streaming service costs and gym membership fees. The move comes as the banking royal commission zeroes in on irresponsible lending and mortgage fraud, and as the banking regulator pushes the sector to be more meticulous when it combs through borrower information. Westpac sent out a note to brokers and branch staff informing them that the number of expense categories customers would have to fill out and verify is to more than double. Borrowers will be quizzed on their gambling, alcohol and tobacco consumption, and...
Last modified on
Hits: 184 0 Comments
Rate this blog entry:
0
Continue reading
Bank lawyers under pressure as royal commission lays groundwork for coming hearings The Australian 1:27pm April 11, 2018 Richard Gluyas   Major bank legal teams are in a world of pain, desperately trying to keep up with the cracking pace set by the financial services royal commission. So far, the best guide to commissioner Ken Hayne’s intentions has been a new line of questioning from counsel assisting, or notices to produce documents, starting to fall from the sky, signalling the groundwork is being laid for a new area of scrutiny. That’s why the April 16-27 financial advice hearings are known to presage a switch to business lending, most likely towards the end of May. While there’s talk life insurance could follow business credit, the trail then starts to grow cold. The word on the street from those who are generously remunerated to peer over the horizon is that Hayne could conduct...
Last modified on
Hits: 196 0 Comments
Rate this blog entry:
0
Continue reading
NAB: Raided firm’s CEO had top contacts at bank for years The Australian 12:00am April 12, 2018 Michael Roddan, Andrew White   Helen Rosamond, the chief executive of the Human Group — the company police raided on Tuesday in connection with an alleged multi-million-dollar fraud against National Australia Bank — penetrated the highest executive ranks at the ­lender for close to a decade, ­according to former executives who worked at the bank. In an investigation that has already coincided with the resignation of the long-serving chief of staff to NAB boss Andrew Thorburn, The Australian can reveal the Human Group developed close relationships with senior leaders of the country’s third-largest bank despite being largely obscure to the rest of corporate Australia. Mr Thorburn yesterday said he felt sadness and grief after discovering someone with whom he had “a longstanding personal relationship” was allegedly involved in the multi-million-dollar fraud against the lender....
Last modified on
Hits: 625 0 Comments
Rate this blog entry:
0
Continue reading
Hayne royal commission spells end of bank gravy train Australian Financial ReviewApr 9 2018 11:00 PM In share price terms, the past 12 months for investors in the big four banks has been tough. The share prices of Commonwealth Bank of Australia, Westpac Banking Corp, ANZ Banking Group and National Australia Bank have declined at least 14 per cent in the year to April 4. As some of the most popular stocks on the local bourse, the pain has been widespread among individual shareholders, self-managed superannuation funds and large super schemes. Worse still, the future does not look much better. It's not quite the death of the bank trade, but it looks to be the end of the gravy train that has made millionaires of many mum and dad shareholders (and their SMSFs) since CBA floated almost 27 years ago. The underperformance is likely to be due to a confluence of...
Last modified on
Hits: 238 0 Comments
Rate this blog entry:
Continue reading
Pension fund giants back Commonwealth Bank class action The Australian 1:21am April 10, 2018 Eric Johnston   Some of the world’s biggest pension funds are planning to launch a class action against the Commonwealth Bank, claiming the lender engaged in misleading conduct and committed a string of disclosure breaches relating to a separate legal claim brought last year by anti-money laundering agency Austrac. The class action, which has not yet been lodged but was announced last night, has backing from some of CBA’s major shareholders, including heavyweight United States public pension funds with a combined net worth of nearly $US500bn. This includes the $US224bn California State Teachers Retirement System (CalSTRS), the $US150bn Teachers Retirement System of Texas (Texas TRS), the $US71bn Massachusetts Pension Reserves Investment Management Board, and US$44bn Colorado Public Employees Retirement Association, according to Melbourne-based law firm Phi Finney McDonald The looming action is a severe blow to new...
Last modified on
Hits: 391 0 Comments
Rate this blog entry:
Continue reading
AUSTRAC steals Commonwealth Bank CEO Matt Comyn's thunder Australian Financial Review Apr 9 2018 11:45 PM James Frost   The financial intelligence regulator AUSTRAC has stolen the spotlight from Commonwealth Bank CEO Matt Comyn on his first day in the top job with allegations that the bank broke the law by knowingly opening transaction accounts for customers it had reasons to suspect of money laundering. Among the transactions AUSTRAC says the bank ought to have known, or at least suspected, were not legitimate was $250,000 deposited by an Iranian salesman and a second unemployed customer and a $150,000 deposit made through a Russian Bank from company located in a known tax haven. AUSTRAC's reply yesterday to CBA's defence of the money laundering allegations made it difficult for Mr Comyn to clear the air as he promised the bank would be more accountable and more transparent under his leadership. He delivered his...
Last modified on
Hits: 336 0 Comments
Rate this blog entry:
Continue reading
'A mongrel bunch of bastards': The small businesses being crushed by the tax office Adele Ferguson, Nassim Khadem & Lesley Robinson Sydney Morning Herald 8 April 2018   “In dealing with the ATO, I’ve never come across such a mongrel bunch of bastards in my entire life.” Mark Freeman’s troubles with the Australian Taxation Office began in mid-2011 with an audit of Blackwater Treatment Systems, a company he set up to develop technology that would turn waste into reusable water. The company had won research and development grants from the government’s innovation arm, it was working in collaboration with the University of NSW and had third-party support from Standards Australia. But the ATO decided the company wasn’t eligible for the grants and tax offsets and hit Freeman with a $250,000 tax bill. “It was like a horror story,” he tells a joint Age/Sydney Morning Herald/Four Corners investigation into the ATO. “I...
Last modified on
Hits: 283 0 Comments
Rate this blog entry:
0
Continue reading
Banks under fire for taking 217 days to pay compensation claims Sydney Morning Herald 9 April 2018 12:05am Clancy Yeates   The corporate watchdog has criticised banks for taking an average of seven months to start paying customers who are owed compensation, calling for stronger legal powers to influence how the big four respond to misconduct. As the royal commission puts bank remediation schemes under the microscope, the Australian Securities and Investments Commission said that once banks had decided to pay compensation, on average it took another 217 days before the first such payment to a customer was made. "ASIC considers that this length of time does not accord with values expressed by banks and is likely to constitute conduct falling below community expectations (and is contrary to the characteristics of a good financial system)," ASIC said in a submission to the commission. In a further swipe at the sector's approach...
Last modified on
Hits: 133 0 Comments
Rate this blog entry:
0
Continue reading
Loan ‘overrides’ worry APRA The Australian 12:00am April 9, 2018 Michael Roddan   The banking regulator has told the financial services royal commission it is concerned about the way loans are approved for borrowers who don’t meet serviceability criteria. In its response to the first round of hearings for Kenneth Hayne’s royal commission, the Australian Prudential Regulation Authority said there was no consistent approach across the sector for measuring how many loans were sold to borrowers who didn’t comply with normal restrictions that would see them barred from getting a loan. The loans, sometimes referred to as “overrides”, include cases where customers’ income and expenses do not meet the lender’s serviceability requirements. Banks might normally assess a customer on their income and not bonuses, but they have the ability to override this decision and give a loan to a customer outside normal policy parameters. Lawyers for the prudential regulator, Robert Dick,...
Last modified on
Hits: 325 0 Comments
Rate this blog entry:
0
Continue reading
‘Don’t play with the big boys’ The AustralianApril 9th, 2018 Andrew Clennell  Libs tired of Malcolm, yet who else is there? Anyone but Tony!  Ripping themselves apart.   In the PM’s office, you’re either “compliant or an enemy’’. One tirade by his right-hand woman sums up the siege mentality. Mark Connell came back to his desk to find three missed calls from an unfamiliar number. Then came the fourth call. Shouting down the line at a million miles an hour was the principal private secretary to the Prime Minister, Sally Cray, as she tore into Connell, who is the chief of staff to NSW Deputy Premier John Barilaro. It was shock-and-awe stuff. “I’m so f..king angry,” came the tirade from Malcolm Turnbull’s senior staffer, who Connell had never met. “Your boss will cease (talking about Turnbull) and he will step down from this talk about Turnbull and the leadership. “You guys...
Last modified on
Hits: 510 0 Comments
Rate this blog entry:
0
Continue reading
Big four banks hit back at 'misconduct' claims By Clancy Yeates & Sarah Danckert    6 April, 2018   The big four banks have strongly rebuffed claims of "misconduct" over a series of incidents in their consumer lending businesses, in response to the first round of hearings into the sector's behaviour. ANZ Bank, Commonwealth Bank, National Australia Bank and Westpac have addressed the arguments put by counsel assisting, Rowena Orr, for royal commissioner Kenneth Hayne to make a range of misconduct findings against the banks. Submissions released from the banks on Thursday showed the big four challenged many of Ms Orr's arguments that the banks had breached their duties to customers. NAB said in its response that the royal commission should not find the bank engaged in misleading and deceptive conduct through its introducer mortgage referral program. NAB said the royal commission had not properly identified the conduct that gave rise to the finding. "The...
Last modified on
Hits: 308 0 Comments
Rate this blog entry:
0
Continue reading
ANZ to pay $3m after ASIC investigation Clancy Yeates ANZ Bank will pay $3 million and has pledged to overhaul processes in its financial advice business after failing to give more than 10,000 customers annual reviews of their investments. The Australian Securities and Investments Commission (ASIC) said ANZ had also agreed to compensate its Prime Access customers who did not receive the documented reviews they had paid for between 2006 and 2013. The bank has so far paid $46.81 million in remedies, with total compensation estimated to be $46.85 million. ANZ's commitment comes as the royal commission is set to put other financial advice businesses under the microscope for failures to provide customers with all of the services they paid for. The first case studies in the next round of public hearings, kicking off on April 16, will focus on failures of Commonwealth Bank and AMP to provide customers with all financial...
Last modified on
Hits: 341 0 Comments
Rate this blog entry:
0
Continue reading
Royal Commission will shred reputations but not profits   https://www.euromoney.com/article/b17mxb2bbz81gz/royal-commission-will-shred-reputations-but-not-profits   Published on: Friday, April 06, 2018 The likely recommendations from Australia’s investigations are changes that should have been made years ago. The early skirmishes in Australia’s Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry suggest that banks are not in for an easy time.  The tone was set in March when Rowena Orr QC gave two banks, Commonwealth Bank and National Australia Bank (NAB), a firm dressing down for failing to do their homework properly in the submissions they were required to lodge.  In a tone worthy of the sternest headmistress, she told off NAB for “failing to grapple with the task” it had been set.  The whole thing will be a public relations nightmare for the banks, but where ultimately is it taking us?  The bulk of what’s under scrutiny is at the retail end of town in the name of...
Last modified on
Hits: 175 0 Comments
Rate this blog entry:
Continue reading
Memo Greens: we already have People’s Banks in the real world Sydney Morning Herald 6 April 2018 3:41pm Michael Pascoe   The Greens’ whacky “People’s Bank” thought bubble has been broadly – though not unanimously – trashed on macroeconomic grounds. What’s been largely missed is the left-wing populists trashing Australia’s real people’s banks, the ones that actually work in the real world with real people. If the Greens desperately want to punish the Big Four banks for sundry misdeeds, you’d have to assume they are already banking with Australia’s many fine APRA-supervised, RBA-backed mutual-owned banks, credit unions and building societies. The Big Four have around 80 per cent of the housing market. Instead of backing the alternatives, educating the public and working on policy to level the playing field, the Greens want to introduce a tiny extra player more likely to steal ideologically-driven customers from the mutuals than the big banks....
Last modified on
Hits: 159 0 Comments
Rate this blog entry:
0
Continue reading
ANZ agrees to lift wealth management game Australian Financial Review Apr 6 2018 12:41 PM James Frost   ANZ Banking Group will pay $3 million and submit to regular independent reviews of its systems and processes after charging thousands of wealth management clients for a service they never received. The Australian Securities and Investments Commission published the terms of an enforceable undertaking with the bank on Friday morning, which revealed refunds to 13,000 of the bank's wealth management customer is forecast to reach $47.9 million. The bank had previously estimated the issue affected 8000 customers and would cost $30 million. ANZ customers who had signed up to the Prime Access wealth management offering paid for and were entitled to documented annual reviews but did not receive them. The issue affected customers who signed up to Prime Access Connect, Prime Access Essentials and Prime Access Tailored. ANZ said the issue began as...
Last modified on
Hits: 190 0 Comments
Rate this blog entry:
0
Continue reading
Ian Narev’s CBA legacy: big returns and big problems The Australian 12:00am April 7, 2018 Richard Gluyas   From Monday, when he slides his feet under the chief executive’s desk at Commonwealth Bank, Matt Comyn will be peppered with the same question asked of his predecessor: what do you want your legacy to be? Ian Narev, who left the building on Friday, used to answer: “I just don’t think that way.” Perhaps it’s just as well. While Narev’s six-year tenure has been marked by sector-leading financial returns, it will be remembered for an extraordinary sequence of missteps, misconduct and misdirected energy, often exacerbating the pain already suffered by CBA’s customers. In a short video and note to staff this week, Narev had no option but to confront the unpleasant truth. “Legacies are not about individual leaders; they’re about collective achievements,” he said. “Regrettably, they are also at times about failure. “Recently...
Last modified on
Hits: 260 0 Comments
Rate this blog entry:
Continue reading
David Murray says banks should persevere with wealth management divisions Australian Financial ReviewApr 6 2018 11:00 PM Joyce Moullakis   David Murray, the architect of Commonwealth Bank of Australia's push into wealth management almost two decades ago, says the mooted retreat from the industry by several major banks is the wrong decision. Mr Murray, who led CBA for 13 years until 2005, this week said while the nation's banks were navigating a number of issues, including the royal commission and tougher capital requirements, that did not warrant an exit from wealth and funds management. "That's my preference, but others see it differently," Mr Murray, who also was chairman of the Financial System Inquiry, told The Australian Financial Review Banking & Wealth Summit. "It's a toss-up inside the banks about the future of customer relationships on one hand and some prudential issues on the other. "If you think about the extent of...
Last modified on
Hits: 317 0 Comments
Rate this blog entry:
0
Continue reading
Brokers - Sellers NOT to blame for dodgy fraudulent Interest Only Mortgage Loans: Blame the Engineers at the Major Banks.  Blame the Corrupted Regulators Denise L Brailey  7th April, 2018 The Royal Commissioner has been asked to look at the delivery of Bank driven "Financial Advice and "Financial Strategies" that have caused so much distress to ordinary Australians during the past two decades. Reports handed in to the RC by Major Banks and the Australian Securities and Investment Commission ("ASIC") are expected to blame the sellers.  ASIC has not been forthcoming in their explanations of the Mechanics of these frauds in lending.  The Government pays ASIC half of what is received for ASIC minding the corporate database acting as a corporate librarian: approx $450 million annually to report to Treasury each month. Shortly, the Turnbull Government will change the system of payment and ask the Banks to pick up the cost of running...
Last modified on
Hits: 245 0 Comments
Rate this blog entry:
Continue reading
ASIC chairman James Shipton warns banks to come clean Australian Financial Review Apr 5 2018 4:18 PM James Eyers   The corporate regulator wants banks to improve the speed of reporting legal breaches, after the Hayne royal commission highlighted that banks had failed to file "breach reports" within the timelines set down by the Corporations Act. The new chairman of the Australian Securities and Investments Commission, James Shipton, told the second day of The Australian Financial Review Banking & Wealth Summit that when it comes to reporting problems, "at its core, this requirement relies on participants identifying breaches and reporting them quickly". "It is a core part of our regulatory system that allows us to identify both individual breaches as well as broader themes so that we can respond appropriately," he said. "We will take very seriously any incidents where there has been a failure to report." Mr Shipton urged banks...
Last modified on
Hits: 193 0 Comments
Rate this blog entry:
0
Continue reading