Big banks have used the covid disruption to introduce a bank debt dispute resolution regime to lock the gate on home, farm and business borrowers who have engaged bank debt consultants to help them battle bank theft, fraud, dishonesty, overcharging and abuse.

The illusion of debt resolution assistance - a façade for moneylender-controlled outcomes

First the banks formed AFCA to sound like a government authority. AFCA is in fact a membership organisation of moneylenders, brokers and counsellors who make their living out of lending money or sorting out loan disputes. AFCA is a farce, as most farm or business borrowers who have gone to it with mortgage debts will attest. It favours the big banks whilst giving small lenders a hard time. In this way the big banks lock the gate on borrowers, sending them to pro-bank consultants. Now the banks have established their own “charity” wayforward to make borrowers think they are getting independent advice on loan disputes whereas they are dealing with people and organisations funded by the banks again. It is clever that the big banks lock the gate on borrowers to prevent them going to those who will seriously challenge the banks and then they provide their own tame consultants to engineer a bank-friendly outcome.

Regulations limiting independent consultants assisting borrowers

Then the banks had the former Coalition Government introduce regulations to stop anyone who was not a member of AFCA from helping consumers battle dishonest bank practices with their own specialist consultant not in the pay of the banks. This is perhaps the most effective way the big banks have locked the gate on borrowers who are battling with rising interest rates on home loans. Banks have, thanks to the previous coalition government almost completely prevented independent and caring consultants from helping home buyers facing mortgage stress. However what they have failed to do is prevent us at GBAC from reporting the bank, its directors and CEO to Federal Parliament by Votergrams for the powerful MPs to confront the dishonest bank directors in their attempts to sell up borrowers who were misled into potentially unaffordable home loans.

Regulations limiting independent consultants assisting borrowers

The banks are also running a campaign against consultants helping borrowers with Debt Management, with a regulation requiring them to also belong to AFCA and the banks offering to help borrowers whose Debt Management Firm is not doing the right thing by them. You have to hand it to the moneylenders. The Royal Commission exposed their dishonest ways and so they have moved to quickly close down all possible escape avenues that misled, cheated or defrauded borrowers may have had once they realised their banks were taking them down on a grand scale. Having converted my Chartered Accountancy practice into a Bank Debt Solutions firm in 1987 once banks were de-regulated, I could not have imagined just how brutal, ruthless and dishonest the banks became as soon as they were deregulated. Despite their attempts to control the bank debt dispute resolution regime and continue to suck out the profits from many farms and businesses then sell up the assets as a bonus, we have managed to convinced them to write off very substantial debts when they have been exposed in front of their customers. Of course borrowers can still engage lawyers and go to court if they have a spare million to pay lawyers and court costs. The banks can engage the best lawyers in the country to fight any borrower. They must do that lest a court case goes against them and sets a precedent favouring borrowers.