Well Duh

Banks have turned into Big Brother and are snooping through customers’ personal transactions before granting them loans to try and catch out whether they have hidden pets or could be pregnant.

Following public pressure from the royal commission, banks are now going through customer’s transactions to try and catch them out lying about their spending before approving loans.

In one example a customer was quizzed about why he hadn’t declared he had a pet in his loan application after the bank noticed he’d spent $50 a pet shop. The man had been buying a gift for a friend.

In another case a big four bank asked a woman if she was pregnant after they noticed she was spending a lot at baby shops.

Mortgage brokers told The Daily Telegraph they are now being asked to provide double the amount of documents on customers compared with two years ago.

Banks doing due diligence before determining capacity to borrow? Shocking.  This is how the banking system is supposed to work. For good customers, for people who live within their means, for people who are financially responsible, this works well.

This entry was posted in Economics and economy, Financial Services. Bookmark the permalink.

35 Responses to Well Duh

  1. Roger

    On the other hand, in a less open society this information and the power it bestows could quite easily be put to sinister purposes.

    What if I make a regular electronic deposit to an organisation that is comes to be deemed by the powers that be as beyond the pale? A conservative religious or political organisation, for example? And how far back do these records go? Presumably to the beginning of electronic banking. And even if a bank only uses them for commercial purposes, can they be hacked by people with nefarious purposes?

    With humankind, one must always consider the worst possible thing that could be done with an otherwise seemingly benign power before giving it one’s approval.

    In the meantime, use cash…while it lasts.

  2. Caveman

    CBA doin interrogations even if you hold a normal savings , Ive just been put through the drill as to what I use my savings account for and where does the money come from. Im not even applying for any loan.

  3. Confused Old Misfit

    Cash is King.

  4. Mother Lode

    There is clearly something wrong with the banking industry and it’s culture if the are not just giving money to anyone who asks for it.

    Take as an example a man who blows all his money at the track. He will need money for food and shelter and holidays. His need is greater than a bijillionnaire on the North Shore. But the banks won’t lend to him the needy one, but the man who already has money.

    The government should do something.

  5. Death Giraffe

    Went to buy a gold coin as a present,
    Could not purchase without showing photo ID.
    What the hell?
    You need to get your heads around the fact that people no longer get an envelope of cash on payday.
    There is no alternative to dealing with a very small cabal of increasingly “progressive” banking institutions.
    It isn’t as if you don’t know how this can be abused to shut down opposition to the crony capalist fascist state thesd loons are building.
    Look at the Bendigo bank dealing with opposition to Bendigo Mosque group.
    Look at how Paypal is acting over Sargon and Patreon.

  6. John Constantine

    Feudal Australia’s political class would love to serve up a cashless economy to their oligarch Landsharks aristocracy.

    Rationing will be so much easier when your card only buys beer on the weekend, or won’t work at maccas if your fitbit reports inactivity.

    Good luck subscribing to Quadrant.

  7. Rusty of Qld

    Back in the day we used to get paid with cash in a little brown envelope. The banks had to kiss your arse to get you to put your money in their bank. Now with electronic banking they have your money for two days or more earning them interest on the short term money market and charging you to give you your money!!!
    Blood sucking parasites, worse than the honest leech who eventually drops off.
    Neither shall he buy nor sell without the mark of the (beast) bank.

  8. Bruce of Newcastle

    Excellent!
    I bought some NAB shares this morning.
    If the dividend doesn’t change they will yield 12.4% before tax.

  9. Tel

    Mortgage brokers told The Daily Telegraph they are now being asked to provide double the amount of documents on customers compared with two years ago.

    We used to provide no documentation at all … but now we have to provide twice as much!

  10. Neenee

    How often, if ever, does a bank lose out on a mortgage?

    Banks only consideration should be to ensure that the value of the property is sufficient in a default situation to repay their loan and necessary recovery costs. Banks are just specialised pawn shops.

    Customers should be treated as adult free agents who have the same right to invest their deposit on a mortgaged property as they have to bet on a horse at the TAB.

  11. Dr Fred Lenin

    I suppose the banks are just doing the normal thing in todays world , governments are collecting more and more information on its citizens , so the greedy bankers think why dont we do it ?
    The government can only lose total control of the citizens without it. We can actually lose money , .much more important than freedom .

  12. Tom

    There is no alternative to dealing with a very small cabal of increasingly “progressive” banking institutions.

    Damn right, Arky. My bank — which started life as a credit union before merging with other credit unions and now gets to call itself a bank — is out of control.

    It’s supposed to be run for the benefit of members like me, but we were never asked for permission to implement loony leftwing policies (and disinformational propaganda designed to damage the Australian economy it’s now knee-deep in which will ultimately kill its business) like this (via email):

    Hi Tom,

    Seen some new advertising around?

    If you have, it’s because we’ve just launched our new campaign.

    It’s a campaign with a difference. It’s about being part of a movement. The clean money movement.

    You might have noticed a shift towards people aligning their choices as consumers with the social and environmental issues they care about. We certainly have.

    They are looking for companies with purpose which we’ve already seen unfold in areas in the form of clean energy, clean food and ethical investment. But, we also know that many people are not making that connection with banking.

    That’s why we’re setting out to educate people about how their choice of bank influences whether their money is doing good or doing harm.

    As a Bank ******** customer, you can be confident your money is clean money. As you probably already know- it’s doing good, not harm.

    We say your money is “clean” because we don’t lend it to industries that do harm, including coal, weapons, gambling, tobacco and live animal exports.

    Instead, as a customer-owned bank, we believe it’s important to use your money in responsible ways, creating positive impact for people, their communities and the planet.

    The clean money movement is about creating systemic change. The more customers we attract, the stronger the movement is.

    If you’d like to learn more about how you can help build this movement, reply I’m in – and we’ll be in touch.

    The bank with clean money is the bank Australia needs.

    I’m disgusted, but objecting would open me to retaliation. And it’s pointless changing to a real bank, because the others are as bad or worse.

    What a time to be alive.

  13. Chris M

    This is how the banking system is supposed to work.

    It’s hard for me to understand the Libertarian view at times.

    Chose not to deal with W-pac any more after they pushed for carbon tax then later sent emails to their employees pressuring them to vote yes on f-g marriage. Just a big activist organisation now. Oh, and they had to be secretly bailed out with emergency funding during GFC.

  14. stackja

    In the past a letter to the local bank manger, an appointment made, customer and local bank manager met. If in the opinion of the local bank manager the customer was reliable the loan was granted, little documentation required, and a handshake. Then banks were ‘reformed’. Now first find a bank. None in my suburb. USA had low doc loans. Then with previous laws and regulations now RC, Australians have to prove they are reliable. Banks were probably lax but how many customers ‘lied’?

  15. Dr Faustus

    Responsible lending will be the ultimate downfall of Shorten’s ‘Affordable Housing Scheme’.

    The uptake of Rudd’s NRAS was primarily by Community Housing groups and other Not For Profits.
    Private individual investors quickly cottoned on to the fact that Registered Scheme Developers were adding $50,000+ into the cost of a $350,000 Registered NRAS dwelling (to cover paperwork, OTT certification and approvals, and gouging) – and purchasers were then soaked for 10%+ management fees to ensure that only Registered Tenants lived in the Scheme dwellings.

    Hard to see inflated investments like these passing the banks LVR/Income tests for negatively geared individual investors.

    Hard to see institutions wanting to accumulate big bucks to put into a government scheme, with high risk rental cash flow, that could be curtailed at whim (as NRAS was by both Gillard and Abbott).

    Hard to see Community Housing Associations finding the shortfall $80/90 billion to build Bill’s 250,000 ~$370k Affordable Dwellings.

  16. Myrddin Seren

    Tom

    The clean money movement is about creating systemic change.

    So is Marxism in all its permutations.

    The Capitalists will sell us the rope with which we will hang them.”

    We’re so f**ked.

  17. Genghis

    The whole problem is MORALITY.

  18. Ƶĩppʯ (ȊꞪꞨV)

    Never trust banks… ever.

  19. Buccaneer

    Tom,

    Change to a real bank and buy bank shares, it’s called participating in a capitalist market. While ever you money is controlled by the socialist cabal, not only will they screw you on return, you can’t access control of their organisation via buying shares and they will tell you what to do with your money. Also demand the government do their job and uphold the law in regards to inappropriate behaviour in the financial sector, if they had been doing that in the first place instead of encouraging socialist parasites like the sham bank that controls your finances, we would not have this mess.

  20. Pedro the Ignorant

    Weird goings on in the banking and cash trading world.

    I suspect a lot of it has to do with money laundering by criminals and terrorists, but ordinary Australians are being treated as potential criminals by sticky beak government agencies.

    I can legally and anonymously buy as much gold as I want for cash at any licensed dealer and I can trade cash and gold as much as I want to a private buyer or seller, but as soon as I attempt to sell my stash to a licensed dealer I have to provide 100 points of ID, the proceeds have to go to a nominated bank account and the dealer is obliged to report the transaction to some faceless .gov financial overseer.

    Another basic freedom sliced off as we march inexorably towards “1984” style dictatorship.

  21. Pedro the Ignorant

    Tom (1.26pm), bail out of that bullshit “bank” ASAP.

    Banks should be in business to maximise profits for shareholders. not indulge in social justice wankery.

  22. Bruce of Newcastle

    The whole problem is MORALITY.

    Two good articles today (both via Lucianne):

    Restoring Civilization

    They can sense it. They can feel it. Something is seriously wrong in our civilization, and many people know it. This is why despite the relatively good economic times, most Americans polled say our country is on the “wrong track.” Yet many are like a gravely ill man who knows he’s not well but can’t precisely identify his ailment. Most often, Americans have only a vague sense of cultural malaise, or they “self-diagnose” wrongly.

    Years ago I had a brief “state of the nation” discussion with a very fine, older country gentleman. While no philosopher, he did offer the following diagnosis. Struggling for words and gesticulating a bit, he said, “There’s…there’s no morality.”

    Basically the Left has dispensed with any morality except feelz, and that is killing civilization.

    PRAGER: Explaining The Left, Part V: Left Vs. Right Is Brain Vs. Mind

    On the most important issue in human life, determining what is right and what is wrong, the brain (feelings) has triumphed over the mind (reason and values). At least two generations of Americans have been raised not with moral instruction but with the question “How do you feel about it?”

    Almost every left-right disagreement in American life can be explained by the brain-mind conflict. The brain is led by what feels good, the mind by what does good. And leftist positions feel good.

    As I said, the Left is all about selfish feelz. And they’ve been indoctrinating the kids into this world view for two generations now.

    I have no time for people who bash banks because banks are just behaving like people. If you want banks to behave, teach kids morality.

  23. Mak Siccar

    Bruce of Newcastle
    #2891627, posted on December 24, 2018 at 4:21 pm

    If you want …. , teach kids morality.

    +100

  24. Squirrel

    This can probably be filed under the heading of “The Great Australian Tradition of Going From One Extreme To The Other”.

    After years of shameless, wanton promiscuity by the Australian banks, they have now turned into a humourless parody of Monty Python’s Not the Spanish Inquisition. Perhaps the international lenders are starting to ask some difficult questions……?

    Back in the days when a decent home could be had for the price of a bottle of Fanta and a couple of chiko rolls (as the smashed avo brigade would have it), I recall the bank manager going back through the savings account passbook for a couple of years to check for a regular pattern of savings, sufficient to cover the mortgage repayments – and that was probably about as intrusive as it needed to get.

  25. GoWest

    Exactly — you could not write this stuff – its so predictable…

    Lets see — First Morrison the treasurer say’s don’t do this to the banks, it will effect the economy…
    1. Naturally Stupid MT..urnbull and BS..horten don’t listen; decide this is great idea and do a Spanish inquisition on the banks.. Nearly..everyone is happy, nasty banks are in the stocks and they get to throw the Vege’s. The media loves it, the politicians beam with happiness. The media loves it….
    2. The MT BS govt give their 3 bank regulators new powers and they use them.
    3. Bank staff are retrained in the new reg’s and abused on a daily basis.. Loan applications fail. Bank staff leave the industry, brokers are excommunicated from the loan industry…
    4.. Oops … the economy .. RBA panics… home buyers whinge.. MT urnbull gets the boot for dumb decisions – BS horten is fated as the next PM (naturally he wont listen to his treasurer..).
    5….Tick Tick Tick

    Regulator will relax their new reg requirements on Jan 1 2019…

    An apology to all the bank staff put through hell for something that’s not their fault is owed…

    The FSU should take this opportunity to get their members in yellow jackets and strike to ensure the liberal and labor government’s never do this again. Make the govt suffer..
    Unfortunately the FSU is joined at the hip to the ALP so that wont happen….

  26. Go West:
    At the end, the host succumbs to the parasitic load.
    Then the parasites look for another host or die.
    None of them will get off their arses and work because that makes them the new host.
    …and you know what happens to hosts.

    We need industrial strength Combantrin to get rid of the gut parasites, but there isn’t one strong enough to work without killing the moribund host.

  27. MPH

    Don’t worry, QE is coming to Australia and the dollar be damned. All that foreign funding has to roll over to AUD which will prop up the AUD for a while but eventually repatriation of bank funding will be overwhelmed by the cash created for the RBA to buy junk assets from the banks balance sheets.

  28. Hydra

    So glad I got my first home loan with my bank before these laws. For my second one (an investment property) I just bought, they just asked if anything had changed.

    If they had my bank account transaction extracts they would see a lot to bookie websites. I make a profit on gambling, but no doubt they wouldn’t appreciate seeing the transactions.

  29. Don’t know what deliberately obtuse game the mongrels are playing at.
    Ability to repay is of little concern to them, and hasn’t been for a long time.
    They’re just pawnbrokers.

    Want to borrow a $million?
    Got no hope of paying, but have assets worth $3 million, no problem. Loan approved double quick.

    Want to borrow a $million?
    Show a demonstrable net income of $1 million from the asset purchase, loan not approved, due to “insufficient security”

    I’ve no sympathy for any banking staff who are hounded out of a job, out of a marriage, or out of their sanity.
    They deserve it. They’ve been going along with the charade for a long time.

  30. Texas Jack

    That Rowena Orr somehow managed to prove all bar one major bank CEO is a jibbering idiot tells us quite a bit. Boeing has never built a completely fail-safe plane. Nor has Airbus. Your local pub will #*&#$ up the occasional keg. But Orr managed to get away with merry hell because she convinced everyone that banks and bankers should have a zero error rate and literally nobody on the Treasury benches had the brains to realise the damage this absurd new standard for bankers might be. They certainly didn’t have the balls to push back given the all-bankers-are-bastards community attitude and the power of the media.

    The response? A major contraction of credit availability and the likely abandonment of not unreasonable banking products from the APRA-regulated space of the big banks which have all been, in effect, partly nationalised. Which will simply push the credit-deprived into the shadow system where there are less obvious wolves.

    And now we have to endure the major financials turning themselves inside-out to prove their virtue. No more funds for coal or ciggies and no end in sight to what they won’t do to deliver zero-risk banking where nobody can ever get hurt again. Apparently. Until someone does. Then what?

    No, they’re going to mend their lending ways to save the reef, and stop land clearing, prevent global warming, hire perfectly according to demographics and diversity, and gender neutralise everyone because the new totalitarians are scarily armed with smart phones and well thumbed copies of Rules for Radicals. And the idiots who decided on the Royal Commission played straight into their hands.

    But the bigger illiberal issue in all of this is that the RC proved to be just another pathetic paving stone in the long road to destroying the individual. The slow rot to remove the slightest notion of responsibility for ones own actions, and to pay a price for getting things wrong is the carbuncle and it keeps spreading unchecked and the Liberals are oblivious.

  31. Rusty of Qld
    #2891547, posted on December 24, 2018 at 12:46 pm

    Now with electronic banking they have your money for two days or more earning them interest on the short term money market

    “In November 2013, the Reserve Bank introduced changes to its Reserve Bank Information and Transfer System (RITS) to allow the same-day settlement of non-government direct entry obligations. Settlements now occur as part of multilaterally netted batches at 10.45 am, 1.45 pm, 4.45 pm, 7.15 pm and 9.15 pm each day.”

    My experience has always been that I get same day settlement so if this is not occurring its your institution or perhaps on a weekend.

  32. Hydra

    Want to borrow a $million?
    Got no hope of paying, but have assets worth $3 million, no problem. Loan approved double quick.

    Not any more. No income, no loan.

  33. EvilElvis

    Bank staff are retrained in the new reg’s and abused on a daily basis.

    My local banks staff certainly are, and for good cause. Another industry ruined by women and SJW wankerism. As bad as bloody public ‘servants’ they are.

    All the big industry’s are business funded government outlets. This country is a joke.

  34. PB

    “Cash is King.”

    Absolutely, and yet new generations will flush it away seduced by phony promises of convenience.

  35. EJ.

    TOM..out the Bank! Plain sight for all to see. Fight like the activists within & out as they are the ones that want to shut down anything that hurts their feelings. In the mean time we fight the good fight ousting those businesses that screw anyone, anyway, that gets in the way of them getting to the top & the agenda.. Walk away with your fortune and find something or place your hard earned where a business respects you as customer/client, not a participating activist in their name.

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