Guys, links to define consumer… what do you think??
1. Covered under the code
http://www.creditcode.gov.au/display.asp?file=/content/credit_does_cover.htm
2. Not Covered under the code
http://www.creditcode.gov.au/display.asp?file=/content/credit_does_not_cover.htm
hi Queen gucci (and others),
Unfortunately the UCCC does not cover any credit given for investments or business purposes. That thus includes an investment property/property rented out to a tennant etc. Just wanted to clarify that. The trade practices act, and the credit ombudsman service will likely be the avenues to pursue with this one, and of course via the MIAA if this tool is/was a member – or is representing a lender/originator that is. Keep us posted. [strum]Forgot to mention, WA has a heap of other ‘laws’ for brokers we do not have – recalled that from my notes. For example the Finance Brokers Control Act 1975, the Finance brokers Code of Conduct, and the Finance Brokers COntrol regulations 1977, which I beleive apply to all finance brokers, regardless of whether the loan falls under the UCCC or not. Check them out along with the COSL and you may be in with a good shot. All the best.
The UCCC as many have said are not involved with loans that are more than 50% for business or investment purposes. They are for loans that are mainly for personal use
Wayne Skewes
Mortgage Broker
Email [email protected]
http://www.eaussie.com.au/Mortgages/Aussie_Mortgage_Adviser.asp?ContentID=852280
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service I come to you!Originally posted by queengucci:Guys, links to define consumer… what do you think??
1. Covered under the code
http://www.creditcode.gov.au/display.asp?file=/content/credit_does_cover.htm
2. Not Covered under the code
http://www.creditcode.gov.au/display.asp?file=/content/credit_does_not_cover.htm
Hi Queen
Just look straight at the legislation, here:
http://www.legislation.qld.gov.au/LEGISLTN/CURRENT/C/ConsumCredCode.pdf
Note, all states have adopted the same legislation, so even though this is QLD is should still apply.In section 6(1)b is lists when the legislation will apply:
the credit is provided or intended to be provided wholly
or predominantly for personal, domestic or household
purposes;In you case it was investment purposes. BTW, did you sign the business purpose declaration? This is further indication of whether the UCCC would apply.
Terryw
Discover Home Loans
Parramatta
[email protected]
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Originally posted by queengucci:I have gone all through every piece of documentation and contract and it is outlined NOWHERE not even at settlement that $10,000 was being taken out of my equity loan. They simply dumped the funds into my account minus $10,000.
The bank and the mortgage manager are stunned, and have confirmed it is not in accordance and that refinancing was completely unnecessary. My broker still has no answers for me but to “not worry about it”.
I have sent his complaints manager a 5 page letter including all emails to confirm that he told me “Not to worry about it” and sections of the law applicable…… with a letter of demand requesting they reverse out the transation which is not that difficult considering the loan has been refinanced with the SAME bank for the SAME AMOUNT.
This broker has cost me the following unnecessary fees, that I shouldnt worry about
1. Mortgage Stampe Duty
2. $10,000 worth of break costs
3. Fixed loan for 3 years. I was planning on selling the properties early next year and will have to pay further break costs
4. 0.75% increase in interest rate on $800,000Now tell me guys, would you not worry?
Sounds to me like the broker charged you $10k in brokerage fees. I would suggest you check the page detailing his/her commission on the loans. To refinance a loan even a fixed term one to a higher rate would incur no fees with the majority of lenders break costs or not. Maybe a $700 fee but that would be able to be waived as well.
You may be able to apply for a mortgage duty exemption as you have already paid duty on that amount of money check it out with your local office of state revenue or the Govt Dept who handles these taxes they can advise you on this.
I would also be upset and speaking to the Ombudsman in relation to the other fees you will incur in relation to the extra $6k/yr (approx) in interest charges and break costs with selling next year.
Good Luck,
Stu.
Stuart Milne
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