Monday, August 6th, 2012
PERTH WA. It’s no secret that consumers are not happy with the performance of the ‘big 4’ banks in Australia, with only 76% of people recently polled, saying they were happy.

Mortgage default and foreclosures are becoming more prevalent every day in Australia, but most people don’t realise that many large banks and non-bank lenders are using mortgage and loan application forms to make a grab for peoples’ homes and the Titles to their properties.

Banks use ‘Loan Application Forms’ (LAF’s) and ‘Service Calculators’ to determine a person’s ability to repay a loan by using their income, expenses and assets and calculating a maximum amount they can borrow.

Award-winning consumer advocate and President of the Banking and Finance Consumer Support Assoc (BFCSA Inc), Mrs Denise Brailey said, “We have looked at over 100 Loan Application Forms so far and in every case there is evidence of alterations to documents after the signature was obtained and without the clients' knowledge or consent.”

Alterations include exaggerated incomes and assets, understated expenses, and sometimes up to three different sets of handwriting on a single application. “Our main priority is to save the homes of those people who have been caught by the use of fraudulent documentation.”

Many of the thousands of members of BFCSA Inc have expressed frustration at not being able get copies of their original LAF’s from their lender and are being told that the docs are either lost, not available, or that they have no rights to request or receive a copy for their own files.

A recent statement by ASIC outlined banks’ and lenders’ obligations to provide customers a copy of their LAF’s at the time of signing. Of particular importance to customers is the Loan Service Calculator that rides with the mortgage docs and assesses the customer’s ability to repay.

Mrs Brailey has recently been invited to be a witness at Parliament House in Canberra on 8th of August at 2.15pm, and to deliver a Senate Submission.

“We will be calling for an end to ‘Low Docs’ and ‘No Docs’ loans and for a ROYAL COMMISSION into the BANKING SECTOR. We want to highlight the seemingly unchecked practice of imprudent lending on the part of many of our major banks and lenders, as a result of non-affordability and possible LAF fraud.”

“The other serious issue for Australian home owners is the selling of the RMBS (Residential Mortgage Backed Securities) packages and the securities fraud, known as ‘double-dipping’ that goes hand in hand with the process of mortgage securitisation”, Mrs Brailey adds.

Contact Profile

BFCSA Inc (Banking and Finance Consumer Support Assoc)

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned and appalled with the growth of Loan Fraud in Australia. Their work is entirely voluntary in the spirit of community concern and they investigate many scams. For more information visit:

Denise Brailey - President
P: (08) 9631 1488
M: 0401 642 344


bank fraud, mortgage fraud, RMBS fraud



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