25 March 2019
Quotes attributable to Patrick Veyret, Policy and Campaigns Adviser, CHOICE:
"National Australia Bank knew as far back as 2015 that their introducer program was shonky. It's shameful it's taken this long for them to act. Thousands of Australians have had their lives affected by false applications from this introducer program. The Royal Commission revealed that many Australians were duped by introducers into unaffordable loans and defaulted as a result.
As we've seen across the industry, percentage-based commissions create conflicts of interest, where advisers, such as introducers, are incentivised to recommend larger and less affordable home loans to maximise their own pay-cheques.
There must be fundamental change to how loans are sold to Australians. By deferring responsibility to introducers and brokers – banks get all the benefits of shonky sales practices, but have avoided culpability for the widespread harm they've caused the community. Shifting blame is no longer acceptable and the banks must be held to account for these programs."
Media contact: Jonathan Brown, firstname.lastname@example.org- 0430 172 669