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A couple ask: Dear Denise, There are plenty of people advertising but your site highlights the traps for which I am grateful. My husband and I have lived a modest lifestyle and worked hard. We are both in our 60's -my husband still working full time and my job dwindling down to 12 hours only a week so we need someone with experience on financial/lifestyle options for those in our situation. We have never been risk takers and need to find someone who can tell us how to take advantage of financial options without losing our savings through lack of knowledge of tax laws. Our local radio station is running ads for a person who says they are experienced in aged care. We are both in our own home living on residential acreage and are hoping to live out our days there.
MY ANSWER: Hi Mrs P, The ad suggest "experienced in aged care." Yes that worries me……….. If you own your own home and want to live out your days there………………..why borrow money? If you have money to invest, that’s a tough one because Australian consumers of financial advice and products have been placed back in time to “buyer beware” and lazy ASIC is warning (as it did in 1998) “if it’s too good to be true it probably is….” But ASIC are not applying the law to those in the industry who are breaking the law....the Lenders. Hence Consumers called for the Inquiry by the Senators into ASIC early in 2014. I was a key witness. We are not blaming the planners, we are blaming the banks as our website suggests. Planners are taught to suggest you place your money into property………………………..that means borrowing. Its a con strategy. All roads seem to lead to the banks and why we are calling for Royal Commission. The sellers do not understand the dangers and are simply taught by BDMs to use service calculators to grossly inflate incomes without your knowledge or consent. Sellers have no idea they have been taught by banks to break the law and later on wear the blame for the criminal offence of fraud. The documents i also altered by credit assessors inside the bank and 18% of all fraudulent mortgages are FULL DOCS. Income is NOT verified but the borrower will never see the document they signed on day one of application. The Global scam is called Sub Prime Lending. Banks will also insist you use buffer monies attached to the mortgage and force you to accept a $20,000 additional credit card, whether you wish to accept or not. If you fall for the ruse and sign the application, neither banks nor seller will give you a copy the moment you sign the three pages. Late a further 8 pages are added of which you have never seen, yet the small print says: "I have read and fully understood this document." But the bulk of the document is hidden from you and added after you leave the office or bank. The sellers are taught "never allow the customer to fill in that crucial document....on orders from the bank DO NOT SHOW THE BORROWER the service calculator and do not leave a copy." There have been 17 Inquiries into Financial Advice during the past 15 years and yet only one restricted, low key inquiry into Lenders and bank products. Tax Laws have to be changed and so that issue will be heatedly debated this year so you cannot rely on that factor. Politicians are calling for tax advantages to be scrapped. If YOU saw the bridge had collapsed in a winding road, as a regulator you would warn the public or at least put up red tape and a danger sign. Our regulators see things as “consumers have to look after themselves….don’t count on us etc.” The problem is we cannot recommend the “advice” industry at present as the dangers and losses are as bad as the stories which are now being told and likely to be of greater concern in 2015. Over $100 billion has been placed into risk bearing strategies. Bankers teach the planners and engineer the products. The Planners themselves only have a $1450 and 32 hour course to learn how to be an expert………………… They are really selling bank products and strategies and work as SELLER of product. They are paid to sell products and you need to look at where their commission comes from. I do hope this helps or it simply means more people will lose their home in the same way as has occurred for past 15 years. Any strategy you have, you are better to aim for modest income and/or part pension and hold on to the title! I am a criminologist experienced in the study of white collar crime and after 20 years of research, I do understand how the industry works and yes it appears on the evidence gathered and presented to Parliament, to be conflicted. The Planner works for those who pay commissions and that is not you and your husband. The problem lies within which “master” the Planner is serving. Planners do not realise and have also come to us to complain they have lost their homes. Its a high turn over industry for that reason. Best advice: Stay clear of strategies that involve banks and mortgages. Kind regards Denise Denise L Brailey President of BFCSA (Inc) Banking and Finance Consumers Support Association (Inc) www.bfcsa.com.au denise@bfcsa.com.au |