In the 2012-2013 financial year, Financial Ombudsman Service and Credit Ombudsman Service Limited received a significant number of complaints against brokers. Nearly half of all home loans are facilitated by brokers. When things go very wrong for the borrowers e.g. they cannot meet their repayments, the brokers have usually moved on, leaving the borrowers to battle.
Anna Dooland gives a financial counsellor’s perspective of how defaulting borrowers struggle with the situation, including blaming themselves.
The amendments to the National Consumer Credit Protection Act 2009 (Cth) now allow consumers to take action against brokers (and other intermediaries) who act poorly. However, this right does not extend to consumers who apply for business loans. Consumers are therefore advised to take precautions when entering into loan agreements.
We are grateful for the Consumers’ Federation of Australia’s consent for use of this article.