Contributed by Ugly
The banks have fired their first shot in their fight back against the revelations of the Banking Royal commission.
It takes the form of adds by mortgage brokers, using a graphic Grim Reaper type campaign, which claims to defend competitive interest rates.
Mortgage brokers have been willing partners with the banks, taking a share of years of rip-offs from customers. Now they claim they are protecting the interests of the same customers.
One of the recommendations from Commissioner Kenneth Hayne is that mortgage lenders should no longer be allowed to accept trailing commissions provided by the banks and provide an incentive for widespread abuse.
An add called “Don’t kill the Competition” says it all. Contained within it is the threat that, if they are restricted and the market is not allowed to operate freely, people will be paying more on their mortgage.
The campaign, carried out in the name of the Mortgage and Finance Association, claims that they will be driven into the arms of the banks. It’s a clever distortion to manipulate discontent with the banks, to hide what is really going on.
The television advertisement begins with a family walking down a dark corridor with doors labelled non-bank lender, leading credit union and regional lender, slamming shut before them. The truth is that the banking Royal Commission recommendations are not directed at these.
If the mortgage brokers can’t make enough without double slinging their customers, through high direct commissions and the trailing commissions that their customers are ultimately forced to pay, the mortgage lenders are not doing a good job and invite much greater regulation than is the case at present.
This fear based campaign is calculated to scare people away from supporting changes that bring greater regulation to the finance industry, and this includes the banks.
Australia must see this scam for what it is. We must not be duped into forgetting what we have learnt over the last few years.
Dont’t kill the competition add
Video by the Mortgage and Finance Association