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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.

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Reserve Bank governor Philip Lowe zeroes in on bank lending Australian Financial ReviewApr 17 2017 11:00 PM James Frost   The Reserve Bank of Australia under governor Philip Lowe has backed the concerns of regulators about bank lending standards, seizing on the rising number of households who are a month away from missing a mortgage payment in his first major review of the financial system. Dr Lowe has zeroed in on a rise in the percentage of households who have a buffer of less than one month's mortgage payments, in contrast with the last review conducted under his predecessor which saw risks abating. The RBA has put the spotlight firmly bank on the banks in its twice yearly report by noting "one-third of borrowers have either no accrued buffer or a buffer of less than one month's payments". This latest study of the financial architecture adds more detail to the worrying...
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Mungo McCallum:  Turnbull’s non-trade deal in India 18 April 2017 https://independentaustralia.net/politics/politics-display/mungo-maccallum-turnbulls-1-billion-non-trade-deal-in-india,10213 Malcolm Turnbull's trip to India has netted taxpayers a $1 billion gift to mining giant Adani and zero free trade deals, but there are some neat holiday snaps with India's PM Narendra Modi. Mungo MacCallum reports. IT HAS to be said that Malcolm Turnbull’s "Passage to India" was a bit of a letdown. For starters, he played an almost inaudible second fiddle to the country’s wildly popular Prime Minister Narendra Modi; even during his favourite photo opportunity on a public (well, somewhat) train journey our leader was all but ignored by the rapturous crowds. But perhaps more importantly for his Australian audience – both the punters and the party room – he produced almost nothing in the way of "announceables". In fact, almost the only substantial result he could promise was a negative one: the much-vaunted free trade deal with...
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“Canada: Irrational Exuberance?” Wild Housing Speculation Drives Entire Economy 10 April 2017 http://wolfstreet.com/2017/04/10/speculation-house-price-bubble-drives-canada-economy/   Why everyone is afraid of breaking the addiction. Here’s another data point on the Canadian housing bubble, how immense it really is, and how utterly crucial wild housing speculation has become to the Canadian economy. Housing starts surged to 253,720 units in March seasonally adjusted, the highest since September 2007, according to Canada Mortgage & Housing Corp. Of them, 161,000 were multi-family starts of condos and rental units in urban areas. In Toronto, one of the hot beds of Canada’s house price bubble, housing starts jumped by 16,600 units, all of them condos and apartments, defying any expectation of a slowdown. Housing starts are an indication of construction activity, a powerful additive to the local economy with large secondary effects. Housing construction gets fired up by the promise of ever skyrocketing housing prices, and thus big payoffs...
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Banks may face legal action on business loans Updated: 7:06 pm, Thursday, 9 March 2017 See more at: http://www.skynews.com.au/business/business/market/2017/03/09/banks-may-face-legal-action-on-business-loans.html#sthash.zJkFJ2rm.dpuf ASIC has warned it may take legal action if lenders don't stop using small business loan contracts that fail new laws banning unfair terms and conditions. A joint review by ASIC and the small business ombudsman has found small business loan contracts by major lenders still include terms that don't comply with new laws introduced last November. The regulator and the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) looked at loan contracts from eight lenders including the big four banks and found a failure to comply with new unfair contract terms (UCT) legislation. There’s an awful lot of, 'agree in principle but',' ombudsman Kate Carnell told Sky News. 'I'd hope that the big banks were serious about the comments they continue to make... that they really are interested in changing their...
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Australia's housing market and the great intergenerational tax rort 17 April 2017 Lindsay David   https://www.theguardian.com/australia-news/2017/apr/17/australias-housing-market-and-the-great-intergenerational-tax-rort Owning your own home was once the great Australian dream but it has turned into a nightmare for young aspiring home owners. Based on the evidence, government housing policy appears to be as follows: keep prices high at all costs, enslaving new buyers with obscene levels of debt for the benefit of banks and existing landowners. In a nutshell, this is called intergenerational taxation. This is a social form of taxation in which there is a significant transfer of wealth from one generation of society to another. In Australia’s economic model, as house prices continue to soar, young homebuyers are forced to take on huge debts to acquire a home that turns to capital for the older seller of the home. Our banks and mortgage companies are writing the largest home loans in the world...
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If CEO’s are not considered to be criminals who is one rung higher protecting bank CEO’s?  Crime pays for some global Banker magnets.  Makes Al Capone and gangster Mates look like Mary Poppins.    Wells Fargo Former Execs to Repay $75m in Bonuses but Bypass Criminal Charges Apply 11 April 2017 http://www.certifiedforensicloanauditors.com/articles/04.17/WellsFargo.html   Former CEO John Stumpf (a major crook in the subprime scandal) was previously fined $41m out of the $200m he made overseeing a complex fraud scheme that stole the identities of over 2,000,000 Wells Fargo customers –– and will now have to repay another $28m, but will not face criminal charges. Whistleblowers who reported Wells Fargo's crimes under Stumpf's were fired and had their names added to an industry–wide blacklist that kept them from working for any of Wells Fargo's competitors. Carrie Tolstedt (the former head of Wells Fargo's community banks) will lose just under half of the $125M bonus...
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From my recollection stamp duty was to be abolished when GST was introduced... The green, amber and red of housing affordability policies State and federal governments are promising action to make property more affordable for first-home buyers. But what would be the best policies? Matt Wade Jessica Irvine 18 April 2017 http://www.smh.com.au/business/the-economy/the-green-amber-and-red-of-housing-affordability-policies-20170414-gvl9ci.html It costs $47,880 each year to service a typical loan on a median-priced house in Sydney, research by the Housing Industry Association shows. Numbers like that have pushed public anxiety about housing costs to an all-time high. The latest Ipsos Issues Monitor poll found 41 per cent of people in NSW now rate housing as one of the most important challenges confronting the community, up from 29 per cent in 2013. The experience of people such as Daniel Stone is driving the public's apprehension about property.  Despite owning his own business and having a good income, the 29-year-old says...
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Housing Crises: From property bubbles to homelessness John Passant 17 April 2017 https://independentaustralia.net/politics/politics-display/housing-crises-from-property-bubbles-to-homelessness,10209 The Turnbull Government's latest band-aid measures will do little to address housing affordability and nothing at all for Australia's homeless, says John Passant. THERE are two housing crises. First, every night, over 105,000 Australians are homeless. Over 6,000 are sleeping rough — in improvised shelter, tents or outside. Yet the number of unoccupied houses, flats and hotel rooms far outweigh the number of homeless people. A society that put people first would take measures to match those needing a roof over their head with the supply of empty residences. Our society doesn’t do that because it is ruled not by compassion but by money. People without money are the ones who end up homeless. People with money buy mansions in Point Piper. Secondly, there is a crisis of affordability. The median price of a house in Sydney is...
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Media Release Peter Whish-Wilson 7 Apr 2017   http://peter-whish-wilson.greensmps.org.au/articles/house-prices-skyrocket-cabinet-rejected-capital-gains-tax-reforms  Greens Treasury spokesperson, Senator Peter Whish-Wilson, is today calling on the Government to reveal the capital gains tax modelling they took to Cabinet back in February 2016 [as discovered by an ABC Freedom of Information Request]. Senator Whish-Wilson said, “The public has a right to know what Treasury found when it modelled the budget and housing affordability impact of changes to capital gains tax. “The Government has to justify to younger Australians why it rejected changes to negative gearing and capital gains tax at a Cabinet level in February 2016 given that median house prices in Sydney have risen by $110,000 since that time. “Every month the Government delays action on housing affordability the amount needed for a home deposit in places like Sydney and Melbourne rises by around another thousand dollars. “I can’t recall when a Government has turned a blind eye...
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Watch the video link within the link...Why did ASIC leave these Spruiker / bank funded creating wealth entrepreneurs free from enforcement of Consumer Protection laws which lazy ASIC NEVER BOTHERED to take appropriate action in 2003   when we led hundreds of victims to report to ASIC and report in the Media.   Judge lifts lid on Henry Kaye's secret windfall from land bank scam Royce Millar, Ben Schneiders, Simon Johanson April 15 2016 http://www.smh.com.au/national/investigations/henry-kaye-charged-60-interest-on-1m-loan-to-failed-land-banking-project-20160415-go798o.html Notorious property spruiker Henry Kaye reaped up to 60 per cent interest from a discredited land banking scam into which mum and dad investors from across Australia have tipped tens of millions of dollars. On Friday morning Federal Court Justice Beach named Kaye and his sister Julia Feldman as beneficiaries behind the scheme, known as Foscari, in Melbourne's outer west, which was a key focus of a Fairfax Media investigation in 2015. 2013 and 2014 Foscari was marketed...
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Why the RBA Board Should Be Sacked Greg Canavan21/03/2017   https://www.moneymorning.com.au/20170321/rba-board-sacked.html   In today’s Money Morning…the RBA has created a housing crisis from whole cloth…all care and no responsibility from politicians and regulators…years of easy money coming back to bite retail investments…and more… ASIC Chairman Greg Medcraft must have a pretty big property investment portfolio. He reckons the out of cycle rate rises by the banks (or two of them, at least) are ‘disgraceful’, according to a report in The Australian. I’m not sure why he’s commenting on the issue. It’s got nothing to do with him or his role. As far as I’m aware, there’s nothing in corporate law to stop the banks from managing their business in this way. Someone who should be commenting on the issue — Wayne Byers, boss of bank regulator APRA — is still sitting on the sidelines, waiting to go on if necessary. Here’s...
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RBA reveals anxiety over housing market risks Australian Financial Review Apr 13 2017 12:03 PM Jonathan Shapiro   The Reserve Bank has become more concerned about the surge in household debt and a rise in interest-only loans that is making the financial system vulnerable to a correction in property prices or rising interest rates. In its semi-annual health check of the financial system, The Reserve Bank issued its strongest warning yet that rampant debt fuelled property speculation, spurred on by tax policies and surging house prices would amplify financial shocks and inflict pain on the entire economy. "While it is not possible to know what level of overall household indebtedness is sustainable, a highly indebted household sector is likely to be more sensitive to declines in income and wealth and may respond by reducing consumption sharply." The Reserve Bank said in its 52-page Financial Stability Review published on Thursday. The report...
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Time to admit failed doctrine on low interest rates The Australian 12:00am April 15, 2017 Alan Kohler   So according to the Reserve Bank, one third of households have no buffer, or a buffer of less than a month’s repayments. This was mumbled on page 21 of the Financial Stability Review, before moving on quickly to commercial property. No one ran out into Martin Place with hair on fire, no one resigned in sackcloth and ashes, or apologised and, as far as we know, there was no roast from the Prime Minister or Treasurer, declaring their loss of confidence in the central bank. Interest rates have been cut to the lowest level in history, yet inflation remains bogged below 2 per cent, unemployment is stuck at 5.9 per cent and now a third of borrowers are so far in debt they are bufferless. They are up to pussy’s bow, full stretch,...
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Blogged on 17 January 2016....article from 2006   http://www.bfcsa.com.au/index.php/entry/bfcsa-unregulated-loans-according-to-gadens-and-denovan-2006-bad-bankers-simply-reclassified-loans  Unregulated loans riskier than UCCC loans? by Jon Denovan October 2006 http://www.nsw.gadens.com.au/clientaccess/newsletters/Updates%202006/update_banking_finance_251006.htm#banking Many lenders go to significant trouble to ensure the loans they make are not regulated by the UCCC.  But does this make the loan safer? I've generally come to the conclusion that unregulated loans secured over the borrower's principal place of residence are often riskier than regulated loans. The starting point in reaching this conclusion is that all loan contracts are subject to review on the basis that they are unconscionable.  That's true for both regulated and unregulated loans. Once a court or tribunal varies or annuls a loan contract because it's unconscionable, the mortgage securing that credit contract and any guarantee are similarly affected. Many credit officers focus on s 70(1)(l) of the UCCC – the so-called "Exocet missile".  The section got this nick name because it was initially...
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http://www.cbc.ca/news/canada/british-columbia/banks-upselling-go-public-1.4023575     GO PUBLIC RE BANK FRAUD IN CANADA - SAME AS AUSTRALIA   'We are all doing it': Employees at Canada's 5 big banks speak out about pressure to dupe customers Calls for parliamentary inquiry following Go Public investigation   Employees from all five of Canada's big banks have flooded Go Public with stories of how they feel pressured to upsell, trick and even lie to customers to meet unrealistic sales targets and keep their jobs. The deluge is fuelling multiple calls for a parliamentary inquiry, even as the banks claim they're acting in customers' best interests. In nearly 1,000 emails, employees from RBC, BMO, CIBC, TD and Scotiabank locations across Canada describe the pressures to hit targets that are monitored weekly, daily and in some cases hourly.   "Management is down your throat all the time," said a Scotiabank financial adviser. "They want you to hit your...
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Byres is relatively new to the job?   Bollocks – read third link   Distribution of debt poses new trigger to the property, housing market Analysis By business editor Ian Verrender Updated Mon at 8:51amMon 10 Apr 2017, 8:51am http://www.abc.net.au/news/2017-04-10/debt-distribution-poses-new-threat-to-housing-market/8429578   Ask almost any economist from a major financial institution and they'll tell you Australian housing is safe; for now.   The reason, they'll explain, is that for a significant fall or even a correction to take place, there needs to be a trigger — some cataclysmic event that would cause a spike in unemployment and a big uptick in forced sales. Australians, we've learnt, will do almost anything to avoid losing the family home. At least, that's certainly been the case for most of the past century.   Unfortunately, it's an argument that no longer holds true. For a new and potentially dangerous dynamic has taken hold that could easily overwhelm...
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And Scott Morrison has just come back from a junket to London to see how the UK housing system works?  Probably went to give the UK advice on how to tap into more black money and do as Australia does!   Lawyers: Keep Australia a money laundering safe haven By Unconventional Economist in Australian Economy at 12:14 am on April 12, 2017 | 14 comments By Leith van Onselen https://www.macrobusiness.com.au/2017/04/lawyers-keep-australia-money-laundering-safe-haven/   A fortnight ago, Transparency International labeled Australia the worst money laundering property market in the world, failing to address 10-out-of-10 loopholes.   This followed a similar scathing report from the global anti-money laundering (AML) regulator, the Financial Action Taskforce, which labeled Australia a haven for laundered funds from China, as well as similar warnings from Austrac. After sitting on its hands for more than a decade, the Federal Government has belatedly undertaken to implement the second tranche of AML legislation...
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Deloitte: House prices “dangerously dumb”   By Houses and Holes in Australian Economy, Australian Property at 6:03 am on April 12, 2017 | 23 comments   https://www.macrobusiness.com.au/2017/04/deloitte-house-prices-dangerously-dumb/   From the AFR: Modelling to shown by Deloitte Access Economics partner Chris Richardson at the National Press Club in Canberra on Wednesday shows a China crisis would wipe almost $140 billion from Australia’s economy, send unemployment up, cut house prices by 9 per cent, and destroy almost $1 trillion of national wealth.   The modelling, which underscores the degree to which Australia’s exposure to what happens in China is greater than at any time in the last two-thirds of a century, will also show that the federal budget would blow out by another $40 billion in over just two years. “We’re out of ammunition to withstand a downturn caused by China,” Mr Richardson will say. “We don’t expect China to go down, but...
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Of course they wouldn’t  reveal names of supporters in cashless welfare scam Read second article....   it is common knowledge that the Liberals also need to repay their current parliamentary leader, Prime Minister Malcolm Turnbull, the $1.8 million he loaned to them for the 2016 election campaign – not to mention other loan amounts he has advanced to them in the past. The Liberal Party is reported to be in debt to the tune of approximately $39 million.   Federal Government fails to name supporters of cashless welfare card trial By political reporter Dan Conifer Posted about 4 hours ago Wed 12 Apr 2017, 5:12am http://www.abc.net.au/news/2017-04-12/government-wont-name-supporters-of-cashless-welfare-cards/8435782 The Federal Government is refusing to name the "community leaders" it claims support a Centrelink income management trial, amid a push to dramatically expand the program in May's budget. Key points: ·         Greens asked Government to provide names of community leaders involved in discussions over...
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Australia is following CANADA down the same path and damage to the economy will be the same...................BIG GAPS IN OUR BANK DATA A vicious circle..the masses go into dept over their heads and that's what benefits the economy. If people stopped using credit cards this minute, the economy would go into a tailspin almost immediately.   Mortgage lenders sidestep rules with 'bundled' loans Deals pair regulated lenders with unregulated partners to let borrowers assume more debt By Matt Scuffham, Allison Martell, Thomson Reuters Posted: Jan 11, 2017 http://www.cbc.ca/news/business/mortgage-lenders-bundled-debt-1.3930774 Canada's subprime mortgage providers are increasingly teaming up with unregulated rivals to sidestep rules designed to clamp down on risky lending.  The result of these partnerships are so-called bundled loans, which pair a primary mortgage with a second loan from unregulated groups called Mortgage Investment Corporations (MICs). Bank of Canada warns about huge mortgages, growing housing debt The arrangements have proliferated, mortgage brokers...
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