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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: FOS say Lenders owe $8.3 million in compo to 99 Consumers. What is ASIC doing?

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FOS complains members aren’t paying their determinations:  One Third of determinations not met by the Banks.

9 April, 2014 Jason Spits 0 comments

 The Financial Ombudsman Services (FOS) has stated that the failure of some FOS members to pay determinations is “emerging as a structural issue in our investments jurisdiction” after more than $8.3 million is still to be paid to consumers. 

FOS Chief Ombudsman Shane Tregellis said the figure related to 18 financial services providers who have not complied with determinations made against them by FOS during the period from 1 January 2010 to 1 January 2014. 

Tregellis said while the failure to pay determinations involved a small minority of the 4900 FOS members, the $8.3 million represented a third of all determinations made in FOS’ investments jurisdiction. 

The $8.3 million is owed to 99 applicants to FOS, with all the unpaid determinations - except one - involving financial advisers. FOS is required to report the non-payment of the determinations to the Australian Securities and Investments Commission (ASIC). 

ASIC is able to take further action against the groups involved and FOS stated that it understands the regulator has taken regulatory action against some of the financial services providers who have not paid determinations.

According to Tregellis eight of the firms involved have claimed they have insufficient funds to pay the determinations while one of the firms involved is in administration and nine are in liquidation. 

FOS has in turn raised concerns about the adequacy of professional indemnity insurance to assist financial service providers pay determinations against them, particularly in the event a financial services provider ceases operating. 

It stated that aggregate funds available under PI policies were not sufficient to meet payments against financial services providers and that the behaviour examined at FOS fell outside of the policy.   This means FRAUD for the uninformed!!!!!

FOS said it would remain an advocate for limited last resort compensation schemes and is in ongoing discussions with ASIC, industry, consumers and policy makers to ensure compensation for consumers can be met by those responsible.


Loans are being made by Banks to people who did not even have the deposit.  Its all arithmetic. Many of these loans were 97% and advertised as such in emails between banks and brokers.  These loans bank approved, knew their customers were going to be hit with an LMI figure of say $12k when there was little or no deposit.  This occurred with those who also were qualified for FHOG.  WE have the documents - banks still approved 000's of these loans.  Yes we agree with Housing Industry Assn.  Cost of Insurance was a grand rort ripping off the most vulnerable. Yet was compulsory to Banks being "satisfied."  Loan MORTGAGE Insurers also used same bank serviceability finance calculator and banks only sent across to LMI 3 pages of the LAF. Wide spread practice and we have the proof. Consumers had no choice.  Something has to change.  

What a DOG's Breakfast this has all become in the world of high finance!!       This email address is being protected from spambots. You need JavaScript enabled to view it.

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  • doyla66
    doyla66 Sunday, 20 April 2014

    If your case is still with FOS and you can not come to a reasonable resolution with bank and you have evidence of very serious systematic issues over numerous loans - not only can you ask for a determination on them all that FOS has already accepted to investigate - but can you request all the paperwork etc be sent to ASIC??

  • doyla66
    doyla66 Sunday, 20 April 2014

    Also if you have discovered more loans in that time that were missed and still in the statutory limits and have some serious issues and related to the ones you have at FOS now - can you lodge a complaint at FOS for those ones too?? Not everything has come to full light as we are discovering as we are sifting through and analysing every bit of paperwork we have. Also there is also lots of incomplete paperwork - which does not make sense.. Eg - 5 people on one loan and LAF info on two, not the other three and then signatures page, (which one applicant signature is missing on it - but on the loan).Why would you have info on 2 and not the other 3 for the same loan application??

  • doyla66
    doyla66 Sunday, 20 April 2014

    Actually - need to do a correction.. They were not missing loans as such.. We knew about them but did not have the account numbers for them. But do now - so we can query them too.

  • Denise
    Denise Sunday, 20 April 2014

    Demand that FOS insist on Banks handing over your client loan files. The "commercially sensitive" crap does not wash. The one page of the service calculator that they all seem bent on hiding or shredding only contains YOUR PERSONAL FINANCIAL INFO and is therefore discoverable. If banks say take us to court - then ASIC SHOULD BE SCREAMING - YES WE WILL TAKE YOU TO COURT. Its way past time for ASIC to take out digit and start some court action IN PUBLIC INTEREST - otherwise laws are meaningless., collecting dust and ASIC has rendered them impotent! ASIC needs to understand what GETTING tough is really all about. I guess consumers have to toughen up and show them the way. BTW, the service calculator one page FORM does show a 5 year old Net Servicing Ratio which is not only no longer "commercially sensitive" it is obsolete and FOS and ASIC know that! The problem is the one pager identifies the fraud and the FRAUDSTER: the lender computer program known as the Calculator - the super income fudging machine! The Privacy Act cannot be abused and misused to hide FRAUD as if it were "commercially sensitive." Time for ASIC to start doing to Bankers what Banks and ASIC have been doing to consumers for decades.....I leave that one for you to figure out! [email protected]

  • doyla66
    doyla66 Sunday, 20 April 2014

    Good to know that about the FOS determinations not being honoured by Lenders.
    In other words, after everything is done, the poor borrowers are expected to fork out for lawyers and Court cases to get paid what they're entitled to under Law?
    Alternatively they'll have to get the Sheriff to raid the offices of the Lenders concerned and take goods to the value of the owings.
    What a farce! ASIC would take years to get through one case of this.
    What about the Government? Aren't they underwriting this ridiculous situation?

  • Denise
    Denise Sunday, 20 April 2014

    FOS, ASIC and POLICE in each State KNOW the bank has multiple copies of the LAF for every single loan and - NONE ARE THE SAME!!! They have admitted some loans have 8 LAF versions. Go figure.....its [email protected]

  • doyla66
    doyla66 Sunday, 20 April 2014

    Are FOS going to tell us which Lenders are doing this?
    Here's a story of a similar problem that happened last year -

  • doyla66
    doyla66 Sunday, 20 April 2014

    I know for a fact that the Nab are not honouring the FOS determinations. No me, but a member of our family that was caught up in Nab's sordid annihilation of our family. A small figured determination is still owing after some 2 years. Not 1 but 2 homes, families and lives have been destroyed by the Nab's fraudulent provision of a business loan. FOS I afraid to say are useless. The Nab are fraudsters and ASIC, well they do not give a hoot!!!!! To many fingers in the pie.

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