The Hardship Bribe
Banks have ruined so many people's lives with Low Doc Lending, but the Hardship Bribery Scandal is one of the lower levels of bankers craving for stealing assets, formerly known as family homes.
Bankers have been demonising their own customers for years, but this is the lowest level even for a respected weasel.
They engineered a Low Doc product. Failed to tell the customers they had developed calculator which drives income up like HEY PRESTO, from $40,000 tto $180,000. Well not really, you see its ON PAPER - but customers do not know of this document. Shhhh................its a banker secret.
The borrower is not told its an INTEREST ONLY LOAN. Its sold as harmless Mortgage. The borrowers believing it takes longer to pay(fr 20 years to 30 years) because the payments are a little lower. The Banker also gave borrowers an additional $50,000 to mask the unaffordability. Nice one Boys!
More lovely fees and interest upon interest.
No-one would guess they could never ever pay their home off. In addition, Bankers would "keep the loan afloat for a further 5 years, by 'topping up payment money," on the unaffordable loan.
No-one realised it was a weasel product! After three or four years, the home is under threat. Bankers develop the HARDSHIP SOLUTION.
This is where they banks had added $7000 to the loan for non existent mortgage insurance. Plus more interest of course! 30 year fee, but loans only planned to last 5 years, remember?
Hardship, the borrowers are told is where "if loan is a but tough without teaser top ups, then we can give you hardship payments for 3 months......."
Trapped again: the actual Hardship payment is not evil bankers being the white knight!!!! Not on your Nelly. Its also lumbered onto the av $400,000 loan which with creative accounting has now blown out to $600k in less than 5 years.
"Another Hardship Payment needed? Oh so sorry we will help you with another three months by stealth." And they can do this three times and more lovely fees for bankers to the poorest people in Australia. Whack the cost on to the pile of debt created by the bankers.
When borrowers start to figure out the fraudulent LAFs etc, they get angry. Very angry. At whom?
Yes the Banks BUT, like all victims of crime, even angrier at the regulatory cover up.
The truth about the cover up will be told very soon...................bank on it!