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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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BFCSA: Bankers must hand over to customer the complete original LAF prior to MORTGAGE LOAN settlement

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WHAT DO WE DO ABOUT FRAUDULENT INCOMES ON LOAN APPLICATION FORMS?  We need strong politicians like Senator Williams to ensure legislative changes and reforms to control Bad Bankers, be enacted and implemented asap.   To ensure via POLICY it is mandatory for:-

Mandatory for all borrowers to receive complete copy of Loan Applications Forms ("LAFs") and attachments to be given to the customer at point of signing. 

Mandatory for all lenders to ensure income verified by phone by internal bank staff prior to approval. 

ALL alterations on bank copy of LAF to be initialled by customer or contracts signed later are VOID. 

The shredding of original LAFS prohibited in law, that the ORIGINAL be handed back to customer within 12 days of settlement. 

BFCSA is in the fortunate position where we see the patterns by collating these documents.  Most Brokers do not ask customers to fudge figures - a rare occurrence but I am sure it happens occasionally.  As one ex Broker has suggested .....Denise, I was told if you ask people to be dishonest to the bank they would not do so - there are penalties so we had to use the englobo figure from the service calculator.  He was won't make any money if you ask client to be dishonest. 

People are shocked by what they are now finding written on the copy document that had been hidden from them in the past six years.  Yes Broker calculators are set at 1.4897% but the internal credit assessors' calculator is set at 1.1%.  We have the proof.  Did Brokers realise that? 

Because the valuations were also skewed on 1,000 forms we have looked at randomly from all states in Australia, LVR's in a falling market then climb.   A major problem occurs if the borrowers are forced to ask for more buffer monies or refinance because to not so would mean loss of home, that they used to own outright. 

The reason this phenomena occurs is directly caused by non-affordable loans being approved with impunity.  So the Courts have spoken that it is not the borrower or the broker to take the ultimate responsibility and blame.  The blame lies at the top of the banking sector who are approving all these dirty time-bomb loans with no verification of income checks.  Its either slack lending practices or something much much darker that involves intention to deceive..........on massive scale, as a Banking Cartel. 

I am simply asking for a sensible Royal Commission to measure the damage this has caused to our Economy.  We also ask how and why this happened (and we have the proof) and what can be done to clean it up and, was deregulation of the Banks to blame? 

To me and our members that is fair.  How can you pay off your home over 20 years, then be approached to borrow against it and then lose the home in 4 years?  That was the plan.....similar to America.....and yes First Home Buyers have been caught as well by being told by bank staff to use the FHOG to pay payments with and included as income to buffer affordability and serviceability. 

All of the above was against regulations set by Parliament decades ago.  Later those laws were enshrined in the Bankers Code of Conduct.  What a farce that has been.  Even The Financial Ombudsman has been ignoring s25.1 relating to Bankers' obligation to ensure every loan MUST BE AFFORDABLE.   Those people trapped in these loans.....and it is grand-scale ENTRAPMENT, will lose their homes as the loans were unaffordable in the first place.   As for all those people being INVESTORS....that was also a sham. 

80 year olds written up as landscape gardeners shovelling rocks and banks approved it !!!!!!!  Deckhands labelled as ships captains, all without the punters knowledge or authority.  All without prudent Bankers checking the detail.   Had the borrowers received the original LAF or a copy of the complete LAF bundle ready to FAX to the Bank, the bank scam could not have occurred. 

Like all devious was really very simple.  Just hire an 11,000 strong Broker Channel, give them an in-house calculator, blame the brokers and borrowers for being stupid and trusting the Banks.    WHEN (not IF) it falters in 4 years, CEO's resign.    Major Lenders with 85% of the market recorded record profits from this source......................indeed they did!   Australian bankers the best in the world and we are only 23 million people.  How did we do that if not by stealth and stealing from its own citizens? 

Now watch the CEO's all retire with the loot whilst BFCSA cleans up the mess.  The solution is to hand copy documents to the client. 

What is wrong with that and why was no-one doing that?  And what's wrong with initialling every page and or change and numbering the pages in client's own hand (to ensure extra pages not added). 

Most people we surveyed only recall signing around 3-4 pages max and they signed to say they had read and fully understood the content of the LAF.  You and I know the LAF is around 11 pages.  All Brokers were taught to see the LAF as 3 pages and present three for signing and the other pages filled in later by the broker/bank/credit assessors.  Everyone was taught this via the BDM's (internal bank managers).  36% of all loans were arranged by Bank Managers or staff and NO broker involved.  It was a universal 3 pager scam.  For 50 - 90 year olds to be spruiked like this is appalling. 

You cannot buy two house in one lifetime without fabulous income and a pile of RISK at that age.  Yet the strategy sounds so slick and many fell for it sadly.  The horrifying price to pay was loss of home and how does that assist the economy if all these Mums and Dads in their later life are thrown into the street?   We have to house these people.    Most families were on low incomes and the incomes were fudged by the calculator.  Someone is telling porkies.  

Its a little bit of collectivism that has uncovered the awful truth.  The Bankers' worst nightmare:  the TRUTH is bubbling to the surface at last.   The greatest bank heist Australians have ever seen. 

We need major reforms such as suggested, and urgently.  Now who in our Parliament is up to the job and not connected with Bankers?  Senator John Williams deserves a medal for pushing this issue.    Did you notice that our Australia Day medals go to Sportsmen and Bankers?    Its high time we took Banking Fraud perpetrated by Bankers as a very real threat to our Economy.    

Its time we stopped believing we escaped the GFC.  All the warning signs are there and all the ducks are in a row.  What can we do?  Fight for a Royal Commission, bring back regulation of banks, stop copying America and expose the criminal minds that set this up.  AND Hand over the copies of LAFs at point of signing.  This email address is being protected from spambots. You need JavaScript enabled to view it.

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  • doyla66
    doyla66 Wednesday, 15 January 2014

    When we originally signed our LAF we were not told it required an ABN yet after getting a full copy from the lender on advice from a BFCSA member it states an ABN required but there is no evidence of it on the LAF copy. If an ABN was required without our knowledge can we check whether one was applied for and if so I assume it was by our dodgy broker? If a fraudulant ABN exists shouldn't the ATO have a record and if so shouldn't it surely be a crime to register ABN's without peoples knowledge?

  • doyla66
    doyla66 Thursday, 16 January 2014

    We need to recind the ridiculous legislation that allows our Banks to destroy original documents and replace them with electronic versions

    Denise I was appalled to find out from my FOS Senior Case Manager that the Banksters have been, by passed legislation only last year he believed, allowed to destroy all original documentation and store everything as electronically scanned versions. I find it incredible firstly that some political moron would even consider this a valid request from the Banking fraternity let alone table it and get enough support that it get passed into LAW. This must have happened during the last days of the trauma filled previous Government and flew by unnoticed as there were so many things dominating the news at the time such as the debacle of their leadership spill and outward bickering. It probably slipped under the radar as an add on and another favour from Mr Swan to his Bankster buddies as he was dismantling the very good for our country but no longer required RMBS (oh just by the way why has he never been taken to task on this balls up).
    The new Government should be winding back such poor decisions and making Banks retain the customers only real form of defence their WET INK SIGNATURE, to take that away is akin to taking a sharp knife to the ends of each finger and removing our fingerprints. The Banks apparently claim it is to lighten their record keeping space but we the informed know there is a much more sinister plot behind them (the Banks) wanting this changed in legislation. As we have seen and I have copies of in my file returned from the Bank, changes have been made on many documents and have never been initialled by us to say we have even seen that change let alone approved it. Things altered without our knowledge will become common place and lets face it our Banksters morals are lacking to be kind (if they have any at all) and for them to photoshop a document wouldn't be beyond the realms of possibility.
    My opinion of any legal binding contract is that any signed copy by the purchaser must be retained and in their own hand then witnessed by an outside source totally independent of the two parties entering into the contract and retained as proof of the contract for the life of the contract. If this is altered to suit one party eg; The Bank then it must be considered in-balanced and biased and I would consider the only way these documents can ever be considered is that an independent party a Lawyer for example will have to be introduced in future as the third party looking after the purchasers interest.
    So I think we should return to the retention of all documents WET INK being retained for the duration of the loan just to take away any temptation for our Banks to perhaps alter them in their favour. Also put into place a checklist which will require WET INK signatures or initials of every page plus all contracts entered into must be viewed and checked by a Lawyer/Solicitor of the clients choice. The Aggregator method is obviously not effective and self regulation of any industry leads to dishonest practices making their way into the day to day, it all has to change and it must change now.

  • doyla66
    doyla66 Thursday, 16 January 2014

    Domenic, it staggers me to think this was passed without the scrutiny of independent contract law experts.Evidentally because of the hold up of bills being blocked because of the balance of power fiasco that by the time the major bill was passed , usually at the end of a long day alot of the lesser bills were fast tracked and signed off so our pollies could have a rest.If there is any chance this is a political faux pas it should be rescinded at once.The legal fraternity should be asked to comment, another battle honour for Wayne Swans Treasurer war record.

  • Denise
    Denise Thursday, 16 January 2014

    Ok so a BFCSA Letter to the Prime Minister will be on its way tomorrow. I cannot write to corrupt ASIC or travel freak Medcraft as I trust neither. So the PM's job it is. He is the bloke up the top and responsible for what his agencies and minions are doing or not doing. I suggest all outraged readers and members do the same. [email protected]

  • doyla66
    doyla66 Friday, 17 January 2014

    Denise can you put the PM's address up as a post then everybody can write.

    Hello Denise can you post the PM's address so there are no excuses for members and any other concerned readers to not write regarding this legislation slipping through un-noticed. I will bet London to a brick that this was all rushed through by Wayne Swan at the same time he cunningly went about dropping the RMBS to protect himself and the KING of Securitisation and illustrious leader of ASIC.
    We the public have been lied to and cheated by the previous Government in an effort to protect their Bankster mates but the present Government is also showing signs of condoning many of their crooked actions by not bringing sanctions against the Banks for their obvious breaches of their own codes of conduct.
    I just hope that the full extent of the law is allowed to be used against the perpetrators of the greatest crime of the century in this country (Bank Fraud) when it is unveiled to the world at the Senate Committee Investigation into the Banking and Finance Industries. It still staggers everybody that our Banksters gloat we have the most profitable Banking system in the World with a population of just over 23 Million people. While our politicians revoke laws to protect the common people such as the allowance of Banksters to destroy original contract documents as they have done with this legislation its open slather to rort, rape and pillage.
    It has always been my understanding that a contract is to remain in its original form and any amendment by either party must be resigned and initialled by generally both parties and on many occasions re-witnessed or overseen in signing by JP or the like.
    It certainly appears that our standards and procedures have been undermined to the point where you wonder just how watertight any contract is and if your rights to title stand for anything if someone really wants to scam you.
    So please everybody write to the PM and ask for the return of legislation to maintain all relevant signed copies of you loan documents in their WET INK FORM, this is a convenient out for our Banksters to dispose of unwanted evidence of Loan Document Fraud. I would be extremely interested how long the Banksters had been lobbying parliament to get their wish to destroy loan document originals in favour of electronic copy. I think the legislation should also when rescinded include a paper trail for any online Banking product to contain a signature and a disclosure document stating you fully understand the Banking product you are being sold. I feel it is truly time for our lending and borrowing policies to change and bring integrity back to the BANKING and Finance Industries. I don't think anybody will want to point fingers at someone else if they cause themselves going into Bankruptcy but if in the case of what we are experiencing here and now is nothing short of a conn, a smoke and mirrors conspiracy to perform the greatest asset grab this country has ever seen.

  • Denise
    Denise Friday, 17 January 2014

    Address of Prime Minister: c/- Parliament House Canberra. Or write to constituency office PO Box 450. Manly, NSW, 2095.
    WHO gave the Banks permission to destroy vital WET INK COPIES OF THE LOAN APPLCIATION FORMS
    WHEN DID THIS PERMISSION OCCUR and in what form did the directive take?
    WHICH BODY OF BANKERS lobbied for this to occur?
    How was shredding vital documents in consumers' best interests? An explanation would help in terms of understanding.
    What reasoning of purpose was used knowing the American experience with shredded documents in LOW DOC LENDING?
    WHOSE INTEREEST was this initiative, according to ASIC? Consumers or Banks?
    WHEN was The Financial Ombudsman's Service directed by ASIC that this was occurring?
    Will the Prime Minister immediately revoke this authority/directive in the interest of consumers of mortgage loans and with regard to the fact that Low Doc Loans are already acknowledged as a crime scene.
    We are writing to the Prime Minister because we do not trust ASIC, as ASIC gave the shredding documents notification to FOS and COSL, its licensed EDRs.
    Were you aware of Bankers shredding Loan Application Forms containing fraud and if not, why was the Office of Prime Minister not briefed by Treasury?

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