From Denise L Brailey
It takes courage to speak out.................
BANK PROFITS vs CONSUMER LOSSES
Banks and FOS write: "These ($500k) loans are appropriate for 60 year olds................." we have out own Australian CONTROL FRAUD run by Bad Bankers.
Nothing about these loans is "appropriate" and nothing suggests these are manufactured by "prudent" bankers as per the Bankers Code. Its a massive Bank Scandal....30 year loans that are designed and expected by the Cartel to IMPLODE in less than 5 years!
NOW consider that banks make $40 Billion PROFIT from mostly Low Doc Interest Only products...60% of profit machine.
LOSSES on all loans for CONSUMERS tend to be 30% of $300 billion worth of mortgage sales.
The Bank CEO's are acting as a well oiled Bankers Cartel. These Scandals generated $500k loans to 60 year olds targeted by BIG BANKS as ARIP's: those with their own home, no debt and a pulse.
TARGET MARKET OVER SIXTIES...... Its is a shocking indictment of our banking system that these dangerous products were permitted by Government to remain in the Market Place. The Banker excuses in letters to the victims are disgraceful.
RISKY, HIGHLY EXPENSIVE MORTGAGE PRODUCTS must be removed from the product shelves.
Permanent BANS on unsafe products are urgently required.
Young people need to be warned, these loans are old style bridging loans and can never ever be paid off. They are called Low Docs and potential customers are not told these loans are high risk, high cost 30 year DEBT TRAPS.
We can guide future mortgage applicants on what questions to ask to avoid the traps.