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Consumers Gain Confidence as Get Approved Customers Offered Compensation
Posted: Mar 03, 2016
If you are in the market for business car finance, the recent news reports may have had you feeling a little wary. However, the recent announcement that Get Approved Finance customers are to be offered compensation should boost confidence.
According to a watchdog investigation, over fifteen brokers engaged in unfair conduct on their business car finance rates for over $1.3 million of loans approved. The investigation was performed by the Australian Security and Investment Commission and found that brokers for Get Approved Finance manipulated the system. The manipulation involved getting Esanda, another lender to approve poor credit loans, despite the customers not meeting the lending criteria of Esanda. According to the investigation, the names of borrower’s friends and family members were listed as primary lenders on loan documents. This was designed to mislead into thinking these names were acting as guarantors.
In the ASIC statement, the Get Approved Finance brokers unfair practices went further. Those applying for personal or business car finance were also sold add-ons with a value of more than $15,000. Some of the approved loans were in excess of $50,000. The ASIC stated that Get Approved also earned commission from the add-on providers and Esanda.
The deputy chairman of the ASIC, Peter Kell stated that this case highlighted that some brokers can be tempted into taking "extreme steps to ensure a loan was approved" and they could "earn commissions". This report highlights that lenders need to implement "effective systems" to "address this type of misconduct by brokers" or lenders "run substantial risk of having to compensate" their customers.
Esanda has made the agreement to offer their customers the option of a new loan with significantly more attractive terms than their existing loan or else pay a refund to those who have already paid out a loan. If a vehicle has been repossessed on a personal or business car finance loan, Esanda will not seek to obtain any further repayments.
This report should give consumers additional confidence when seeking finance. Of course, consumers will be interested in obtaining the best personal or business car finance rates. However, the ASIC report has highlighted the need for effective systems, which will allow consumers the ability to trust the figures presented with a business car finance calculator. While approval is an important consideration, it is vital that you can afford the repayments and manage the deal in the long term.
While this report has highlighted that there are repercussions for disreputable brokers, it is still important for consumers to be completely aware of their options. It is vital that you take the time to read through the terms and conditions of any loan offer before you sign. If you are in any doubt, query the details before you make a financial commitment.
If you are in need of personal or business car finance, speak to us. We are a reputable and established broker with access to a diverse range of products. The All Credit team of advisors are on hand to answer any questions you may have about finance rates or you can use our online finance calculator. We would be delighted to assist you in obtaining the deal best suited to your specific needs.
I am a business Coach and Writer in Perth WA, Mom of 2 charming Sons. Cam is my name and for me Writing is Just like playing a Game.