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BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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Denise Brailey

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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Denise

Denise

Denise Brailey has dedicated the past 20 years of her life to being a Consumer Advocate - a voice for the people and former President of RECA (Real Estate Consumer Association. She has helped thousands of investors and is currently President of the BFCSA (Banking & Finance Consumers Support Association). Denise was also awarded and presented with the Rona Oakley Award for Consumer Protection in 2010.
Save our Super: IOOF calls out rivals on cash plays ·         The Australian 12:00AM July 28, 2018 ·         ANTHONY KLAN   EXCLUSIVE One of the nation’s biggest financial services companies, the listed IOOF, says many of the largest retail superannuation providers have been fleecing the public of $50 million a year — $1 billion a year when accounting for compounding over a worker’s lifetime — by pocketing member returns on “cash” super ­investments. In a report for financial advisers, IOOF describes in detail how many super “wrap” platforms — which are operated by “retail” or for-profit providers, the big four banks, AMP and IOOF for millions of Australians — gouge their own members by paying them returns on risk-free cash ­options that are a fraction of ­actual market rates. IOOF, which operates a $26bn wrap super fund with 340,000 members, has also been paying members returns on cash investments substantially below actual...
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A Black Forest: pain for forgotten victims of a financial disaster Sydney Morning Herald 27 July 2018 Adele Ferguson & Ruth Williams   For almost a decade Dave Gilham has dragged around 20 kilograms of documents in a battered suitcase. The forensically compiled folders hold evidence of inappropriate advice, doctored loan forms and more than one hundred items of correspondence pleading with a bank for mercy. Gilham believes he was the last of the 52,000 investors who sank  money into one of the many disastrous schemes flogged by one-time ASX200 member Great Southern, which  collapsed under more than $600 million in debt in May 2009. Gilham, who was advised to borrow to invest in the schemes, is saddled with debts that have almost tripled in the years since due to interest and penalties. “Some days, I get in a dark space, and think dark thoughts, that’s the headspace I get in,”...
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Negative equity starts to bite for buyers 'flipping' property Australian Financial Review Jul 27 2018 1:13 PM Duncan Hughes   Sydney residential property owners who bought a median-priced home at the peak of the boom could face losses of up to $194,000 – or more than 18 per cent of their purchase price – if they decide to "flip" their asset into a falling market. A Melbourne owner in the same position could lose up to $152,000. That's according to research by online comparison site RateCity, which looks at the potential losses faced by property owners in both cities who bought at the end of 2017 and wanted to sell roughly 18 months later. What this illustrates is growing instances of negative equity – where the market value or sale price is lower than the size of the loan. Falling prices plus the upfront costs of stamp duty and the cost...
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AMP shares hit all-time record low as Wilkins flags $300m compo bill The Australian 12:00am July 28, 2018 Michael Roddan   Acting AMP chief executive Mike Wilkins has launched a defence of vertically integrated wealth managers as he flagged compensation close to $300 million for victims of poor financial advice and a raft of cuts to superannuation fees. Shares in the $9.5 billion company plunged 5.2 per cent on the news yesterday to close at an all-time low of $3.30 apiece. They have now lost more than 40 per cent since before its appearance at the banking royal commission. Shareholders will also have to weather a cut to dividends despite the company’s surplus regulatory capital levels, as Mr Wilkins attempts to steer AMP through the “fairly choppy waters”. AMP’s profit for the first half of the year would feel the impact of $55 million for costs incurred during the royal commission,...
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Honeymoon lending rates could turn sour for banks and borrowers, analysts warn Australian Financial Review Jul 26 2018 4:53 PM Duncan Hughes   Lenders' attempts to attract cashed-up borrowers with honeymoon rates could turn sour for banks and borrowers as yield compression and high reversionary rates squeeze profits and discounts, analysis reveals. More than 10 lenders, including Commonwealth Bank, Westpac Group and Suncorp are increasing honeymoon rates on home loan products by up to 55 basis points for investors and home buyers. The deals are intended to stimulate a flagging market, attract borrowers that meet tough serviceability criteria and win new and existing borrowers from competitors. But analysts warn lenders will face increased repricing pressure for existing borrowers – or what is known as the back book – that could squeeze margins of their lucrative books and potentially lower group profits. "Institutional investors are holding the toes of banking chiefs against...
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NAB to refund $67m in fees charged by wealth arm MLC The Australian 10:53am July 26, 2018 Michael Roddan   National Australia Bank has been forced to refund $67 million to customers who were charged hundreds of dollars in fees for the opportunity to access a financial adviser — even if they didn’t use the adviser’s services. NAB today said it would be refunding customers for the so-called “plan service fee” after the Australian Securities and Investments Commission raised concerns the bank’s wealth arm, MLC, did not tell customers they could opt out of the automatic fee once they left the “business super” product to a “personal super” account after they left their job. More than 300,000 customers will be refunded an average of $220 per person, with the bank repaying people wrongly charged fees back to 2012. That totals more than $67 million. The issue affected customers of MLC’s masterkey...
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ASIC costs more than ever but scalps are hard to come by The Australian 12:00am July 27, 2018 Anthony Klan   The corporate regulator’s criminal conviction rate has plummeted to less than a third of its success rate two decades ago while its cost to taxpayers has almost trebled. Australian Securities & Investments Commission chairman James Shipton yesterday made a case for increased government funding, but reviewing the regulator’s own annual reports shows its performance has declined woefully since it was created out of the old Australian Securities Commission in 1998. The revelations of the regulator’s systemic poor performance came as Mr Shipton promised a “wholesale review” of conflicts of interest in the ­nation’s $2.6 billion super sector, following revelations of widespread gouging. Speaking at a conference run by the Financial Services Council, the key lobby group for “retail” or for-profit super fund managers, Mr Shipton said there had been a...
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ASIC boss reminds financial sector it’s ‘managing other people’s money’ The Australian 1:06pm July 26, 2018 Ben Butler   Corporate watchdog James Shipton has told the superannuation industry to stop exploiting people and immediately clean up its act. In a blunt speech to financial services executives this morning, the chairman of the Australian Securities and Investments Commission said he had heard much rhetoric about addressing the industry’s “trust gap” with the community, but the time for action was now. “Now is the time to move from rhetoric to reality,” Mr Shipton told the Financial Services Council annual summit. “So, ladies and gentlemen, let’s get on with it.” Mr Shipton said the misconduct revealed by the royal commission into financial services, which has been running since February and next month will hold hearings into super, reflected the community’s lack of trust in the scandal-plagued financial services sector. He said many people in...
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Treasury lashes corporate Australia, tells APRA to toughen up Australian Financial Review Jul 26 2018 9:51 PM James Frost   Treasury has delivered a strong critique of financial services companies, saying profits have been propped up by a lack of effective competition that led to a collective dulling of the senses for board members. It also delivers an unflinching view of the banking regulator's preferred method of operation, saying it might be time to drop the co-operative approach in favour of taking a harder line against regulated firms. The remarks were made as part of a response to a series of questions about misconduct by financial services companies posed by the Hayne  banking commission. Commissioner Kenneth Hayne asked for information about the culture of financial firms, the effectiveness of regulators and views about conflicted remuneration. Treasury argues that while no financial system is free of misconduct, the Hayne inquiry has exposed...
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Super funds say they have lots of 'other' expenses Australian Financial ReviewJul 25 2018 6:33 PM Joanna Mather   The banking royal commission has highlighted the relatively high costs allocated by industry super funds to a mysterious "other" category, as it prepares to question fund directors next month. A fifth of expenses associated with industry funds, and 10 per cent of those for retail funds, are classified as "other", and these costs may relate to the higher cost of holding unlisted asses, such as infrastructure and direct investments in property. The royal commission, led by commissioner Kenneth Hayne, is likely to examine how fees eat into retirement balances when it calls directors from 14 funds to give evidence starting August 6. The royal commission has named an equal number of bank-owned retail and union-linked industry funds to appear. Administration and investment manager costs make up a large proportion of expenses faced...
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Financial giants take hit over super fee-gouging fears The Australian 12:00am July 24, 2018 Anthony Klan   More than $350 million was wiped off the value of financial services giants AMP and IOOF yesterday after they were pummelled by investors becoming increasingly aware of the extent of fee gouging in the superannuation sector and how it has underpinned years of super-sized corporate profits. Westpac said yesterday it would take a hit to revenue of up to $70m a year by reducing super management fees and offering “simple, low, capped administration fees” on its BT Panorama products. The move followed reports in The Australian of serious concerns about the banking regulator, including that it had for at least eight years been aware of gouging of super members by Westpac and other major financial institutions, but had failed to take any serious action to stop it. Concerns have also been raised that the...
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   NAB promises to stop fleecing farmers The Australian 12:00am July 24, 2018 Michael Roddan, Greg Brown   National Australia Bank has ­ushered in a new era for relations with farmers and other customers in the bush, putting a stop to damaging practices and boosting ­regional services following community outrage and a bruising round of hearings at the royal commission. NAB chief executive Andrew Thorburn used a visit to the NSW city of Wagga Wagga to ­announce that the bank would no longer apply harmful “default ­interest” rate hikes to struggling farmers. It would also introduce new policies to allow farmers to use much-needed offset accounts against agribusiness loans, and find ways to keep banking services in regional communities. “The royal commission and other inquiries reveal that in some cases we have lost touch,” Mr Thorburn told customers including farmer Keith Edyvean, staff and community leaders at the International Hotel in...
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Think tank close to Turnbulls receives $12m government grant Australian Financial Review Jul 23 2018 11:00 PM Aaron Patrick   The United States Studies Centre, a foreign policy think tank with close links to the Turnbull and Murdoch families, has been given $12 million by the federal government. The think tank, Based at Sydney University, was established by the American Australian Association to promote the US alliance, train students, develop policy and provide an intellectual counterweight to American critics in Australian universities. The grant, which was announced on Sunday, will be provided through the AAA, which was co-founded by Rupert Murdoch's father, Sir Keith Murdoch. Part of the money will go to USAsia Centre, which is the US Study Centre's sister organisation located at the University of Western Australia. The grant is an example of how politically connected organisations are often effective at lobbying governments for funding. Prime Minister Malcolm Turnbull's...
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The Aussie dollar funding crisis squeezing the banks Australian Financial ReviewJul 22 2018 11:00 PM Jonathan Shapiro   During the darkest days of the global financial crisis, when terrified policymakers feared cash machines would run dry and wages would go unpaid, there was one measure they turned to gauge the money markets' level of panic. The LIBOR-OIS spread indicated how much the banks would have to pay to borrow money for a month, over and above the overnight rate they could access from the central bank. The higher it went, the more it reflected the anxiety of lenders about the solvency of the too-big-to-fail banks. Australia had its own equivalent spread based on the local money market benchmark – the bank bill swap rate – and in 2008 transmitted its own panic signals as the faith of conservative cash investors in our major institutions wavered. Now, as the 10-year anniversary of...
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I was a 'puppet': Former financial planner claims AMP pressured him to sell inferior products ABC News23 July 2018 Sean Nicholls, Lesley Robinson, Alice Mulheron   A former AMP planner has described the financial services giant as a "dictatorship", claiming he was pressured to sell in-house products, including to a client who would have been left thousands of dollars a year worse off. The allegations are part of an ABC Four Corners investigation into AMP's scandal-plagued financial planning business. AMP is reeling after evidence at the financial services royal commission in April that it charged customers "fees for no service" and repeatedly misled the corporate regulator about doing so during a major, ongoing investigation. AMP also faces a shareholder class action worth potentially hundreds of millions of dollars. The company's market value has plunged by several billion dollars since the revelations. Brett Strong signed on as an AMP-licensed planner in mid-2013...
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Banking royal commission: Hayne demands fresh AMP, bank documents The Australian 12:00am July 23, 2018 Michael Roddan   EXCLUSIVE  The banking royal commission has probed AMP and the big four banks for hundreds of thousands of documents, board minutes and fee and return structures as it prepares to grill executives over misconduct in the $2.6 trillion superannuation sector. AMP, the nation’s largest for-profit super manager, and other major retail super providers Westpac, Commonwealth Bank, National Australia Bank and ANZ, have all been served wide-ranging notices to produce information relating to their superannuation divisions ahead of the fifth round of royal commission hearings that begin next month. Governance issues relating to trustee duties to act in the best interests of members are expected to feature prominently in the hearings. The Australian can reveal the royal commission in the past few weeks has probed AMP and the major banks on fees being charged...
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APRA ‘captured by major banks’ The Australian 12:00am July 23, 2018 Anthony Klan   The regulator in charge of pol­icing the nation’s entire banking sector had become a victim of “industry capture” and was no more than a mouthpiece for the major banks, a global corporate governance expert claimed. The Australian can reveal six of the nine executives running the Australian Prudential Regulation Authority are former senior banking executives, and three joined the executive within weeks of Malcolm Turnbull calling a royal commission into ­financial services in December last year.   Andrew Schmulow, a senior law lecturer at the University of Western Australia and a former senior research associate at the University of Melbourne School of Law, criticised a recent submission that APRA chairman Wayne Byres made to the royal commission. Mr Byres, who has been with APRA since its creation in 1998, wrote to the royal commission saying banks were...
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Watchdog failed to act on warning over super fees The Australian 12:00am July 23, 2018 Anthony Klan   EXCLUSIVE  The regulator responsible for the nation’s $2.6 trillion superannuation nest egg was warned by its analysts eight years ago that the major banks and finance companies were charging members more than 2½ times the market rates for services, delivering them billions of dollars a year in extra profits. A 2010 research paper published by the Australian Prudential Regulation Authority — which can now be accessed only via a federal government archive — shows excessive fees charged by the managers of the retail, or for-profit, funds have been systemically eating into the retirement savings of millions of workers. Despite the peer-reviewed academic paper being written by APRA’s own analysts, including then APRA research head Bruce Arnold, the regulator has not only failed to take any significant steps to address the issue, it has...
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APRA, business at odds with government over super crackdown Australian Financial ReviewJul 20 2018 5:02 PM James Frost, Joanna Mather   The prudential regulator has warned that budget changes designed to shore up the retirement savings of young people and low-income earners will trigger double-digit premium rises for everyone else. The warning puts the Australian Prudential Regulation Authority on a collision course with the federal government, which says the changes will save vulnerable people over $600 million a year. APRA's deputy chairman Helen Rowell warned of unintended consequences from policies to stop fees being charged on low-balance superannuation accounts. Ms Rowell told a Senate economics legislation committee on Friday the changes would "create upward pressure" on premiums for the remaining insured members. The changes require the accounts of members with less than $6000, that have been inactive for 13 months, be transferred to the Tax Office. Another change will require members...
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Australia’s Property Boom Is Well and Truly Over Money Morning20/07/2018 Julija Zivanovic Editor, Money Weekend   House prices in Australian capital cities have been booming for the better half of the last two decades. With our capital cities expanding at lightning rates thanks to international and state migration, it seemed like the boom would never end. The extent of our booming economy has been so incredible, it has become the norm for us in Australia. Australians aren’t really conditioned to expect stock market or real estate falls or depressions. But like all things, what goes up must come down. As reported by The Sydney Morning Herald earlier this week: ‘Only half the properties that went to auction in Sydney and Melbourne on the weekend found buyers. ‘Australian property owners are waking up to the mother of all housing debt hangovers. That’s what happens, you see, when you go on an unprecedented...
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Jobs boom puts RBA under pressure to raise interest rates Australian Financial Review Jul 19 2018 7:38 PM Jacob Greber   The lowest trend jobless rate since late 2012 – when the Reserve Bank of Australia's cash rate was more than double today's 1.5 per cent – is raising fresh concerns households and investors are too complacent about the likelihood of rising borrowing costs. With official labour market data for June showing employers added three times as many jobs as forecast, some economists are warning the Reserve Bank risks being blindsided by a more rapid fall in the 5.4 per cent unemployment rate and faster inflation. "There are a range of feasible scenarios in which it is increasingly difficult to justify the cash rate so far below 'neutral', which is around 3.5 per cent," said Andrew Boak, a senior economist at Goldman Sachs. "The key things to watch are whether upward...
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Villawood says developers paying builders 'secret commissions' Australian Financial Review Jul 19 2018 11:00 PM Larry Schlesinger   Villawood Properties boss Rory Costelloe says builder rebates – or "secret commissions" – have returned to the Melbourne land market. Mr Costelloe, the executive director and co-founder of Victoria's biggest private land developer, said the rebates, which developers offer to builders to entice buyers to their estates were a sign of "stress in the market". He made these comments after Villawood, which does not offer builder rebates, beefed up its own pipeline, snapping up an 89-hectare site near Geelong for $40 million with the capacity to provider more than 1100 homes. The commissions are secret – and unethical if not illegal – because the builder does not tell the buyer they are recommending they build a home in a particular housing estate only because they are getting a kickback from its developer. Mr...
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APRA delivers timely reminder on Hayne probe Australian Financial ReviewJul 19 2018 11:00 PM The AFR View   The job of the Hayne royal commission into the banks is to dig out bad behaviour towards customers. It is not a review into the role of banks in the economy, or how the financial system should be most soundly structured. The commission is designed to look at the banks at their worst, not at their best. It has not disappointed. There has been a horror show of sloppy lending practices, falsely collecting payments and lies to the authorities. Not a scrap of such behaviour can be justified. But it is a long way from the whole story. The most important regulator of the banks is the Australian Prudential Regulation Authority, whose job is to make sure they remain financially sound, that they will not cause instability for other banks, and that they...
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Aussie families default on mortgage repayments after banks underestimate their spend news.com.au JULY 19, 20185:05PM Stephanie Bedo, Frank Chung   AUSTRALIA’S banks have been caught fudging their numbers, using a dodgy financial tool to vastly underestimate borrowers’ expenditure in order to write loans people will never be able to repay. It’s called the Household Expenditure Measure (HEM), an estimate of the bare minimum for essential living costs, along with limited discretionary spending — and borrowers are finally realising their banks got their figures wrong by using it. Now Aussies across the country have been left with investment properties they can’t afford or are being forced to sell their family homes and enter the rental market as they struggle to stay afloat and default on their mortgage repayments. Experts have slammed the banks’ use of the tool, with the person who invented it saying it was “alarming” they weren’t using it as...
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Sacked Westpac adviser received 'high achievement' ratings Sydney Morning Herald 20 July 2018 12:00am Clancy Yeates   A Westpac financial adviser with a long history of compliance problems was allowed to keep advising customers for years before being sacked and even received several consecutive "high achievement" ratings in performance reviews, court documents say. In a landmark case, the corporate regulator last month launched action against Westpac over allegedly poor advice given by former adviser Sudhir Sinha, who worked at the bank from 2001 until he was dismissed in 2014. Corporate watchdog ASIC has launched legal action against Westpac over allegations of poor financial advice given by a former adviser. The Australian Securities and Investments Commission (ASIC) alleges Mr Sinha, who was last year slapped with a five-year ban, breached a duty to act in customers' "best interests," and provided inappropriate advice. It has taken the rare step of pursing Westpac, which...
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