breaking news

Banks under fire from borrowers

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Monday, 16 January 2012

Staff reporter

Making headlines today, the lending practices of Australia's banks have come under review as 300,000 mortgage holders prepare to launch a class action.

According to an article in The Age, mortgage holders will allege that the lending practices of Australia's banks have put families under severe financial stress or at risk of losing their homes.

Retired British insurance broker Roger Brown, who is orchestrating the case, has set up a website takingonbanks.com and is currently seeking claimants.

According to Mr Brown, many Australians are currently experiencing financial hardship through no fault of their own because they should have not been given the loan in the first place.

If the case proves successful, it will be the first time banks have been prosecuted under the new provisions of the National Consumer Credit Protection Act.

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+3 #7 Broker 2012-01-16 10:35
Roger's just an ambulance chaser. Has worked out we have PI insurance in Australia and banks that make money (but not for long). I hope he sinks his own money and reputation into this venture so he can go back to the UK quickly.
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+4 #6 Deena Janes 2012-01-16 10:05
I agree. When are consumers going to take responsibility? From my research and readings it's not the increase in interest rates rising that causes family financial hardship, it's the consumers instant gratification spending habits (credit cards, new TV's etc) that put them under financial difficulty. Both parties need to take responsibility however. I'm sure it would help if the banks didn't insist on having a credit card attached to the loan.
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-2 #5 poida 2012-01-16 09:56
Like to see the postcodes for the 300k.. subprime or thereabouts would account for most of them.. JSB has it right though perhaps he should grab his mate from Qantas and Doug Cameron and the rest of the UK whingers and they can all go home together.
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-1 #4 ExRefund 2012-01-16 09:48
I do not disagree with the previous comments posted but does this show that sub-prime lending did go on in Aust after all??
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+3 #3 ted 2012-01-16 09:35
This bloke has not got one hope in hell of success with this action!!!!
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+5 #2 Glen 2012-01-16 09:32
Great some moron from the UK comes down here to stir things up. Get a mortgage then don't want to pay, have a go at the lender. If this lunacy is successful imagine what doors it opens against everyone. Apparently no one should be responsible for the decisions they make or the contracts they sign. Don't want a mortgage don't apply!!!
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+7 #1 JSB 2012-01-16 09:25
I'm sorry but I don't agree with this position. I believe that it is the borrower, first and foremost who is responsible for making their own decision to borrow the money. The lenders just facilitate the borrowers goals and objectives, and the borrowers are well aware of the risks and stand most to benefit from the loan. It is not the lenders fault if the borrower was too greedy and wanted to live in too expensive a property, or some other event happened that affected their ability to pay. Lenders do assess borrowers affordability, but only based on what has honestly been disclosed by the them and borrowers lie sometimes if it means they will get what they want.. Why doesn't Mr Brown go back to the UK and try and sort out the sorry financial system over there, which has decimated their property market.
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