Clik here to view.
What is wrong with WESTPAC, ST GEORGE, NAB, ANZ, CBA, FOS and the entire Banking System? Why Royal Commission Critical
I guess this email from a BFCSA Member sums up the answer:-
Denise please help us: We were 72 and 75 at the time loan was advanced and now we are soon be 80 and 83. St George/Westpac has just issued us with a letter of enforcement action by Minter Ellison , however they have said we still can go to FOS. We have had 2 goes with FOS both in the negative . FOS did a shocking assessment never examined the full facts despite us telling them they only have to look at the irregularities attached. Westpac has broken just about every rule including false statements to ASIC. ASIC were never on our side and refused to help. Yes we applied for the loan on advice from their agents (ha ha) yet we expected the loan to be rejected. We were told this was affordable and doable and I realise now I was simply being used as muggins me.
I agree with your recent criticsm that if the banks should never be permitted to approve low docs loans to consumers over 60 years old. I realise now this was a direct breach of Section 25.1 of the Australian Bankers Code. The Code is a regulation and the banks have indeed broken the law re affordability. How can this be, that Bankers are permitted to break the law? How can FOS keep saying they see nothing wrong and then side with the Bank?
Its like all doors are shut after we have been sold this loan and then the Government turns a blind eye and we voted for Turnbull. This is shocking for us at our age. Our family are worried as well. Its obvious we have been duped into this loan.
There was nothing affordable or sustainable about this loan. We are highly stressed now and then the bank lawyers start to threaten us. How can this happen in Australia. The Government is saying the banks are going great guns but we are left worried sick. Thanks to you Denise and your endless care of us all, we both understand this now, but being threatened by the bankers with homelessness at our age is far too high a price.
None of or details of income were verified, no phone calls, nothing. We had no idea these Low Doc loans were INTEREST ONLY and that was never mentioned. All we were told is that if you follow this strategy and buy an investment property with equity we would be better off financially and eventually self sufficient. I remember my wife being worried and saying "I don't want to risk our home." The Bank agent assured us that property only goes up and never goes down and this would help us achieve a better retirement. Its all a scam as you have said so many times. We need help.
MY ANSWER:
Section 25.1 of the Australian Bankers Code dictates that Bankers must have regard to affordability………..as in “a prudent banker.”
FOS and Banks have written in their crap-laden responses, that “the loan is appropriate for couple of this age” and in that example the age was in fact 65.
I am challenging the Bank CEOs' and FOS lawyers' notion in that the thirty years loan would imply the couple could work and sustain payments over a 30 year period until they are in their 96th year!!!!
Therefore the Code (as demonstrated in NAB vs RICE and then appeal of NAB vs ROSE Vic Sup Court 22 July 2016) suggests that someone at the end of their working life at age 60, could not service the loan after age 60, so therefore imprudent, clearly established in common law with precedents set. I am challenging the banks refusal to adhere to its own Code that all loans to people over say 60, were IMPRUDENT and therefore each and every one of those loans ought to have been rejected.
With house prices the way they are, the loans required to purchase a home are far too high for even 50 year olds to both work until they are 75.
The Banking Cartel have, in the name of GREED, intentionally pumped up the property market to ensure the bubble will at some point in time BURST and then we will be like Japan in 1998 when house prices dropped overnight to 1990s prices. Our Australian crash will be even greater in terms of catastrophic consequences for our economy. Economic experts such as L F Economics, Lindsay David and Philip Soos are already discussing this predictable event and have written detailed reports to Parliament since 2014.
Our property bubble is not the result of a natural disaster but much worse: a man-made Cartel bent on looting the assets from ordinary older citizens, many of whom are on a pension. Banks were happy to engage en mass asset-stripping....stealing people's homes and also locking out any chance for younger people to own a home of their own. Without doubt these are despicable crimes.
Therefore all ADI’s (banks) must immediately negotiate settlement that is doable and produces satisfactory outcomes/remedies in favour of consumers.
Failure of Banks to co-operateand clean up their own sub prime mess, will force our lobbying activities to intensify.