BFCSA Blog

YES Gadens are bullies and if we had a Royal Commission into our Banks, as is desperately needed (if we are to control bad banking behaviour as happened in every other democratic country) Gadens would be called in to answer 12 months of questioning as to whether they were the masterminds of the Low Doc Scam.  Its a question that every consumer of a mortgage loan in Australia, Full Docs, Low Docs or No Docs has a right to ask.   In our experience, Gadens hand-prints are everywhere.  The Law Societies in each State and indeed The Law Council of Australia should be investigating Gadens for their roll in arranging the lion's share of toxic mortgages in Australia.  The Judiciary in each State, speak amongst themselves and they see trends that are as unpalatable as we have uncovered.  Not that ASIC sees anything wrong.   ASIC permit one person to be...

Citigroup to Pay $968 Million to Fannie Mae on Faulty Loans (BOA paid $11.7 billion) By Hugh Son - Jul 1, 2013  Bloomberg New York Citigroup Inc. (C), the third-largest U.S. bank by assets, agreed to pay Fannie Mae $968 million to settle claims tied to more than a decade’s worth of defective home loans sold to the taxpayer-backed mortgage firm. The agreement includes 3.7 million mortgages originated between 2000 and 2012, the New York-based bank said today in a statement. While the payments were covered by existing reserves, the bank said it will set aside an additional $245 million in the second quarter. Results will be reported on July 15. Citigroup Inc. joins firms including Bank of America Corp. in settling claims that they failed to check details such as borrowers' income when they created home loans. Photographer: Munshi Ahmed/Bloomberg Citigroup joins firms including Bank of America Corp. in settling...

How to effect a giant cover-up?  Very simple.  Send all consumer complainants a letter telling them to go to financial counsellors, who will then send the victims back to the banks for hardship lessons.  When that runs out of steam we set up the External Dispute Resolution Services ("EDR"), run from the same gene pool that loath pesky consumers.  Licence the EDR's such as FOS "Financial Ombudsman" and COSL "Credit Ombudsman" and then they can bear the blame for failure.  ASIC then instructs the EDR's to treat every complaint of fraud as if its "a dispute." ASIC:  "Yes its Fraud by brokers but what do you want us to do?  Go and find a lawyer and talk to the EDR's" Consumers who go to COSL are told: "Oh this is FRAUD" we cannot help you.  Go to the Police. State Police say: "this is definitely FRAUD BY BANKS - go to...