In an article by Adam Smith from Australian Broker News he states that the Finance Brokers Association of Australia’s president Peter White has accused banks of dragging their feet in discharging loans. White told Australian Broker News that even following the 1st July ban on exit fees, banks will make it difficult for borrowers to exit loans. “That’s been going on forever,” White said. “It has been a problem, and is still a problem today as I speak to members.’
According to White, major banks intentionally delay discharging loans to entice customers to stay. “The mucking around, carrying on and delaying when trying to discharge a loan is erroneously long,” he said.
White said banks will work against brokers to keep borrowers in loan products, as retaining borrowers is less expensive than signing up new borrowers. “They turn around and make them offers as a means to retain them. They play these games and don’t do the right things by the customers. As a broker, you’ve done all this work, and all of a sudden banks that wouldn’t proactively do it are now doing it reactively to hang onto a client they lost as a result of lack of service,” he commented. “The tactical games that get played far outweigh a $700 exit fee.”
For more information please contact John Whitten at Individual Home loans on 0749722081 or 0410433919. He can also be contacted through email jwhitten@ihl.net.au.
