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.

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ABS research reveals household debt has doubled over 12 years News Corp Australia NetworkSEPTEMBER 13, 201711:30AM Sophie Elsworth   THE number of debt-laden Australian households is soaring as people push their finances to the brink, alarming new figures have revealed. Rising property prices have resulted in mortgage customers taking on fatter loans, which, combined with an increased appetite for credit cards, is being blamed for the growth in cash-strapped Aussie households. RED ALERT: Aussies $200 away from financial disaster The Australian Bureau of Statistics Household Income, Wealth and Expenditure Survey has found the average amount of debt has almost doubled in the past 12 years — from $94,100 in 2003-04 to $168,600 in 2015-16. Most of this is accounted for by property debt. The research was collated after 18,000 Australians were quizzed on their household income and debt levels in the 2015/16 financial year. The report found 29 per cent, or...
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AUSTRALIAN BANKS HAVE BECOME A CRIME SCENE Bankers Illegal Loan Assessment Policies - Unaffordable Unsustainable Unverified INTEREST ONLY SUB PRIME LENDING. Regulators ASIC and APRA form a Major Part of the Criminal and barbaric Bankers' Control Fraud.   CBA, NAB, ANZ, WESTPAC, Macquarie and every second tier lender have been acting as an evil Australian Banking Cartel. ASIC is using Westpac to cover up the crimes within the bigger banks. FRAUD in lending has become the norm. "The computer did it!!!" Yes but the bank engineers pocketed $200m each for 5 years dirty work. Nice money....stolen from hard working Mums and Dads.   DO NOT SIGN A MORTGAGE APPLICATION during the next three years whilst this mess is eventually cleaned up by two Royal Commissioners. ASIC and APRA have been forced by consumers into the limelight. BFCSA has done all the 17 years of hard yakka in exposing these crimes....
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Joke Joyce.....APRA to TRY to spot any "core organizational and cultural drivers" behind the series of scandals that have engulfed the bank in recent years, and suggest ways to change them?...APRA must have forgotten to look in their own archives!   Beneath the scandals, Commonwealth's bigger challenge is an erosion of lending standards. By David Fickling @davidfickling 12‎‎September‎‎2017‎‎1‎:‎49‎‎PM https://www.bloomberg.com/news/articles/2017-09-12/liar-loans-betray-lost-virtue-of-commonwealth-bank-of-australia    Banks occasionally get swept away in the storm of a financial crisis, but that’s not how they usually decline.  More common, and more deadly, is the slow erosion of income statements and balance sheets when a once mighty institution loses its way. That's been the situation for Deutsche Bank AG, whose return on equity rebounded sharply from the 2008 financial crisis but has slumped since and hasn't hit positive territory in two years. And it's the fate that Commonwealth Bank of Australia should now fear, as it tries to right the...
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Growing inequality puts Australians on same path as America: ACTU Sydney Morning Herald September 13 2017 - 6:17am Anna Patty   Australians face growing wage inequality and the threat of an American work culture of longer hours, low wages and poor job security, the peak labour organisation has warned. In a new report to be released on Wednesday, the Australian Council of Trade Unions says income inequality is at its greatest level in 70 years with a majority of Australians experiencing a decline in living standards and job security. Describing inequality as "the challenge of our time", the ACTU warns that if Australia fails to change course it is at risk of becoming an "Americanised society of high inequality and dead-end jobs, with long working hours, no holidays, zero job security and poverty pay levels". "These are the economic conditions that breed high levels of crime, discrimination against minorities and a broad range...
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20,000 people sent Centrelink 'robo-debt' notices found to owe less or nothing

Sydney Morning Herald September 13 2017 - 10:45am

Tom McIlroy

 

The Turnbull government has admitted it issued robo-debt recovery notices to 20,000 welfare recipients who were later found to owe less or even nothing.

Documents presented to Parliament by Human Services Minister Alan Tudge showed the use of automated data matching processes by Centrelink and the Department of Human Services resulted in 19,980 debt notices being issued, all of which were either reduced or rescinded.

Data to March 31 showed a total of 12,524 people had their robo-debt demands reduced to a smaller amount, while a further 7456 people were found to have no legitimate debt.

In a response to questions from Labor backbencher Steve Georganas, Mr Tudge said NSW had the most debts reduced to zero, with 2234, while another 3644 debts in the state were reduced.

Victoria had 1894 debts reduced to zero, ahead of Queensland with 1665 and Western Australia with 646.

Victoria had 3306 debts reduced but not completely rescinded, with 2718 in Queensland and 1609 in Western Australia.

The ACT had 100 debts reduced to zero, and 169 debts reduced to a smaller amount.

The number of altered robo-debt notices is likely to have grown in the past six months, and only represents instances where welfare recipients have challenged the amounts.

The government said debt reassessments could take place multiple times.

Labor's human services spokeswoman Linda Burney called the figures "absolutely shocking".

"This is the government finally telling the truth and finally admitting that they sent out 20,000 letters to people accusing them of owing money that they did not owe," she said.

"These questions will be pursued by the Labor party with the government. It is just an outrage that so many people were accused. It is incompetence that so many people were accused of owing money that they did not owe."

Among the suburbs with the largest number of debts reduced to zero were Bundaberg, Mackay, Toowoomba and Cairns in Queensland, Gosford in NSW and Cranbourne, Ballarat and Werribee in Victoria.

The areas with the most debts reduced include Bundaberg, Cranbourne, Toowoomba, Cairns and western Sydney suburbs including Mount Druitt, Liverpool and Campbelltown.

Labor, the Greens and social services agencies have been critical of the automated data matching process since late-2016.

 

The tax records of welfare recipients are compared with the levels of pay they reported to Centrelink. Income is averaged over 26 fortnightly reporting periods, leading to distortions and incorrect assessments of recipient's entitlements.

The government maintained the system was working effectively, despite a critical report from the Commonwealth Ombudsman published in April.

The probe found demands on recipients were neither reasonable nor fair, highlighting serious deficiencies caused by the Department of Human Services failing to properly consider the issues involved in moving to a system without human oversight.

Acting Ombudsman Richard Glenn found 20 per cent of people sent an initial "request for information" letter were able to prove they owed nothing to the welfare agency.

Labor has called on the government to act on 21 recommendations from the Senate committee, which said the process should be immediately stopped.

It found the program had a "profoundly negative impact on the lives of thousands of Australians."

 

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ASIC says bank culture a ‘major problem’ The Australian 4:31pm September 12, 2017 Prashant Mehra  Houston we have a problem!!!   Consumers are figuring out they have been swindled by Major Banks.  LIAR LOANS means the LENDERS ARE THE LIARS.  They then commission FAKE SURVEYS to blame the customers for the ROBO APPROVED toxic loans riddled with fraud.  Seriously???? The corporate regulator has again slammed the big banks, saying there are major problems with their culture and conduct that are yet to be addressed. Australian Securities and Investments Commission Chairman Greg Medcraft said he is not scared of taking on the major banks, and highlighted the need for individual accountability and bigger penalties for white collar crimes. “There is still a major problem with culture, conduct and accountability at the major banks,” Mr Medcraft told a Reuters Newsmaker event in Sydney. “I think the big banks are extremely powerful in this country....
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Wayne Byres, David Coleman split on reason for bank rate hikes Australian Financial Review Sep 13 2017 3:38 PM James Eyers   The chairman of the parliamentary committee reviewing the major banks, Liberal MP David Coleman, says he's concerned their recent justifications for lifting mortgage interest rates could be misleading and will be investigated by the competition regulator. In a hearing in Canberra, he called out comments by the heads of the retail banks at Commonwealth Bank, National Australia Bank and Westpac Banking Corp that standard variable rates had risen due to regulatory requirements, suggesting the true motivation was opportunistic and motivated by lifting profits. "This committee would be very concerned if bank executives are making misleading statements about interest rate movements," Mr Coleman said, indicating the Australian Competition and Consumer Commission will closely scrutinise the justifications using its new powers over mortgage pricing. But Australian Prudential Regulation Authority chairman Wayne...
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Capitalism is in crisis, warns Bridgewater's Ray Dalio Australian Financial Review Sep 13 2017 10:14 AM John Kehoe   A crisis in global capitalism characterised by The head of the world's largest hedge fund, Ray Dalio of Bridgewater Associates, says the economy was not delivering prosperity to the bottom 60 per cent of income earners and this had helped hoist the "populist" and "strong" Donald Trump into power. He likened the present day combination of populism, inequality, high indebtedness and near-zero interest rates to the late-1930s, just before World War II broke out. Mr Dalio does not envisage an imminent stock market crash. However, he said fixing the festering tensions inside the United States and between countries would be "even more important" for the economy, markets and society than Mr Trump's proposed tax reforms. "I think as a manager, over the longer term, I'm worried more about the wealth and social gap...
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CBA faces huge capital call as risk-weighted reserves decline The Australian 12:00am September 12, 2017 Michael Roddan   Commonwealth Bank could be forced to hold billions more in regulatory capital after levels of risk-weighted capital fell in recent years, in contrast to rival lenders. The threat of a huge new regulatory bill comes as analysts forecast the “significant” and “vicious” plunge in the bank’s share price will continue, with the regulatory hangover facing the sector to persist for years. Since the anti-money laundering agency Austrac filed allegations in August that the nation’s largest bank had breached the law more than 53,000 times, CBA shares have sunk about 13 per cent. While the threat of large fines from both Australian and international authorities looms for CBA, the bank is also likely to face large increases in regulatory costs. According to Credit Suisse, the amount of capital put aside by CBA for its...
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EY to comb CBA books as Austrac laundering probe looms The Australian 12:00am September 12, 2017 Bridget Carter, Scott Murdoch   The Commonwealth Bank has called in to carry out a forensic audit on behalf of its board of directors charged with overseeing the bank’s response to the ongoing money laundering crisis. The directors have also commissioned Ashurst to advise them on the legal matters arising from the Austrac investigation, especially in terms of their potential personal liability. A class action being mounted by Maurice Blackburn is touted as potentially the largest case of its kind in Australia. The case was given further impetus last week when litigation funder IMF Bentham said it was preparing to put cash behind the claims. Solicitors are urging investors who bought shares between August 2015 and this year to come forward because the bank allegedly breached its continuous disclosure obligations. Class actions usually target the...
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Banks sitting on $500bn worth of ‘liar loans’ The Australian 12:00am September 12, 2017 Michael Roddan UBS ARE THE LIARS – Bring It ON!!!!!  The demonization of Customers has begun!  Borrowers did not mislead the lenders.  The Banks used the computerised Tracker and Service Calculator to manipulate the data and keep secret from the duped customers.  Bring on the Royal Commission into Banks.  Consumers are fed up with corrupt APRA and ASIC conspiring to demonise the consumer victims.  We have the proof.   Australian banks are vastly underestimating the risks of a housing collapse, with the financial system sitting on $500 billion worth of “liar loans” sold to borrowers who gave lenders false information to get a mortgage. The problem, evident in the latest mortgage survey carried out by investment bank UBS, could threaten the financial system as interest rates rise from record lows. UBS found a third of borrowers were...
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Mortgage fraud: $500b of 'liar loans' in Australia, warns investment bank UBS UBS ARE THE LIARS – Bring It ON!!!!!  The demonization of Customers has begun!  Banks vs Consumer WAR.  The Liars are the banks who fudged the information after the LAFs were sent in to be processed.  PROOF is on the TRACKER!   Up to a third of Australian mortgages could be "liar loans" based on factually inaccurate information, investment bank UBS has warned. The global banking giant has followed up a survey of home loan borrowers that it first conducted last year, when it found evidence of widespread mortgage fraud. The latest detailed survey of more than 900 people who took out a home loan in 2017 has found that only 67 per cent responded that their mortgage was "completely factual and accurate", down from 72 per cent of 2016 borrowers. The vast majority of the mistruths appear to be...
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Prepare to lose enormous wealth: Triguboff The Australian 12:00am September 11, 2017 Turi Condon   The slowdown in the apartment market is worsening and will have a severe impact on the economy if it is not arrested, according to the country’s biggest apartment builder, billionaire Harry Triguboff. The number of new apartments sold had dropped and prices had fallen about 10 per cent over the past six months, the founder of Meriton Group told The Australian. “The falling prices will have a big impact on the economy,” said Mr Triguboff, who called on the federal and state governments to review their policies on taxing foreign investors and to expand ­policies on accessing superannuation for housing. China’s continued restrictions on capital flowing out of the country, the local banking crackdown limiting finance for investors and sluggish domestic wages growth had combined with government policies causing a perfect storm for apartment construction. At...
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RBA urges banks to find alternative interest rate benchmarks Australian Financial Review Sep 10 2017 11:00 PM James Eyers   The Reserve Bank of Australia has told financial institutions to make contingency plans in case future problems arise with the controversial bank bill swap rate (BBSW), including considering whether the RBA's cash rate could be used as an alternative benchmark. The central bank's suggestion comes as an estimated $5 trillion of financial contracts in the local market referencing the London Inter-Bank Offered Rate (LIBOR) will be forced to find a new benchmark given LIBOR is expected to become extinct in four years. In a speech on Friday, RBA deputy governor Guy Debelle said that while the RBA expects that BBSW will remain a robust benchmark in the long term given reforms to how it is set, market participants should be asking whether it is the most appropriate benchmark for financial contracts,...
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CBA eyes bond market return in a test after AUSTRAC case Australian Financial ReviewSep 10 2017 10:00 PM Jonathan Shapiro   Commonwealth Bank of Australia may return to global funding markets as early as this week with its first foreign bond issue since details of the AUSTRAC money laundering saga emerged. The bank's treasury team was in Europe last week updating debt investors and market participants said it may be in a position to issue bonds this week. A potential deal would allay any concerns that the bank's access to, or cost of, financing has been impacted by the money laundering debacle, which has hit the share price, prompted the prudential regulator to initiate an independent inquiry and put global credit rating agencies on alert. A CBA debt deal would also come in a busy period of debt sales for Australian companies as Westpac Banking Corp prepares to embark on a...
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Australia condemned for trying to make asylum seekers 'homeless and destitute' Guardian Australia10 September 2017 Ben Doherty  Australian Government is backing Ponzi Financing and Banking Cartels and forcing ordinary citizens into homelessness and poverty.   Shocking treatment of refugees in same appalling manner is no surprise to us!!   Australia’s sudden decision to withdraw financial support and housing from a group of asylum seekers and refugees in Australia has drawn international criticism and formal complaints to three senior rapporteurs at the United Nations. It has also inspired a public pledge by the Victorian government to house, feed and financially support any refugees and asylum seekers left homeless or destitute by the commonwealth’s decision. Last month, the immigration minister, Peter Dutton, announced the imposition of a new “final departure bridging visa” for refugees and asylum seekers brought to Australia from Nauru or Manus for medical treatment. So far, 63 asylum seekers and refugees across...
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APRA turns up heat on union super millions The Australian 12:00am September 11, 2017 Simon Benson  Instead of getting on with bigger issues relating to Major bank Ponzi Financing creating widespread mortgage fraud and flow on activity into toxic RMBS Bonds, APRA is busy going after union super funds????  The evil of this regime is now obvious on a daily basis.   The financial regulator will be granted broad new powers to force the $2.3 trillion superannuation industry to make detailed disclosures of millions of dollars in hidden annual payments to unions and employer groups, and issue orders against any fund that fails to act in the best interests of its members. Legislation is expected to be introduced this week by the Turnbull government to give far-reaching oversight and intervention powers to the Australian Prudential Regulation Authority to crack down on the unscrupulous use of members’ funds. This would include the...
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TWIN PEAKS DISASTER FOR CONSUMERS CAUSED MASS CONTROL FRAUDS IN BANKING Which DUO are responsible for lowering lending standards? John Howard and Peter Costello created the Twin Peaks Model of Regulation that has seen the Major Banks become a law unto themselves. They created mayhem in the banking sector by separating the regulators and leaving consumers totally unprotected from predatory Bankers. Back in 1997 Costello boasted the "greatest consumer protection system in the world." Howard rid himself of Allan Fels at the ACCC and effectively rendered the competition regulator as being impotent by taking away consumers. The ambiguity of the word "credit" benefited banks not consumers. With Howard policies denying the enforcement of law and leading with only FREE MARKET policies, ACCC became powerless to protect the public as the regulator no longer had access to complaint details. Australians had no way of realising how they were being screwed by the 1998...
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Doesn’t pay to be a whistleblower! APRA needs to protect whistleblowers in the CBA inquiry September 7, 2017 4.31pm AEST http://theconversation.com/apra-needs-to-protect-whistleblowers-in-the-cba-inquiry-83638   The Australian Prudential Regulation Authority (APRA) should ensure its inquiry into the governance of the Commonwealth Bank has all the unfettered powers of the prudential regulator to investigate any wrongdoing. This includes protecting whistleblowers. The terms of reference of this inquiry and the panel of experts are yet to be disclosed. As part of its responsibilities for considering corporate governance under the Basel rules (international rules regulating banking), APRA should have mostly unrestricted access to banks’ staff, to conduct its investigations: Supervisors should have processes in place to fully evaluate a bank’s corporate governance. Such evaluations may be conducted through regular reviews of written materials and reports, interviews with board members and bank personnel, examinations, self-assessments by the bank, and other types of on- and off-site monitoring. So, APRA...
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Stop 'drip feed' of bad news: RBA's plea to banks Clancy Yeates 8 September 2017 http://www.smh.com.au/business/banking-and-finance/no-more-bad-news-rbas-plea-to-banks-20170908-gydq1g.html Distrust of Australia's banks will continue unless the "drip feed" of industry scandals ends and banks own up to problems rather than hoping bad news can be kept from the public eye, regulators have warned. Three of the country's most powerful financial regulators on Friday called on banks to be more open when things go wrong, after a series of scandals in recent years put the spotlight on the industry's culture They highlighted that many of the problems dogging banks today occurred several years before the news became public, and this further fuelled the negative perception of banks. Reserve Bank deputy governor Guy Debelle said the "drip feed of issue after issue after issue" across many parts of the financial sector had exacerbated public distrust. "No one feels that anything particularly has changed, because even...
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