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ACCC probes CBA volume quota requirements

Staff Reporter 4 minute read

Refund Home Loans has lodged a complaint with the Australian Competition and Consumer Commission (ACCC) against CBA saying the lender has abused its market power under the Trade Practices Act through implementing minimum volume quotas.

Wayne Ormond, executive chairman of Refund Home Loans, told Mortgage Business he believed CBA was challenging the integrity of all mortgage brokers.

“Mortgage brokers need to look out for their customer’s best interest and get them the best deal. Minimum volume quotas should not exist under any circumstance,” Mr Ormond said.

“We work for the client, not for the bank. If CBA was to raise their interest rate by 100 basis points tomorrow, would we still have to meet their minimum volume quotas? They are simply exerting the stranglehold they have over the industry and I believe this should not be allowed.”


However in a letter to Refund from the ACCC, the commission found that CBA had not breached the Trade Practices Act.

“Without embarking on detailed analysis of the relevant markets, we consider it is unlikely the CBA possesses a substantial degree of power in a market,” the commission said in a letter to Refund dated July 8.

CBA is one of a large number of competitors in the home loans market, the ACCC said.

“Even if it could be established that the CBA did possess the requisite power in a market, a contravention only occurs where the conduct is engaged for an illegal purpose,” the letter said.

As of July 1, CBA stated brokers must submit a minimum of four home loan applications with a minimum of three home loans settled within a six month period.


Brokers that do not meet the criteria must attend a re-accreditation workshop.

The re-accreditation fee for CBA is $500.

ACCC probes CBA volume quota requirements
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