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Finance panic

Discussion in 'Politics, Laws, Government & Insurance' at netrider.net.au started by WheelsLegman, Jul 19, 2012.

  1. Hey everyone,

    I as just wondering, have you ever used Natloans? I didnt realise they where a broker when I sent them an email to get a quote for finance.

    I understand there is like a "finders fee" type thing with them. If i choose to go with another finance option, will I have to pay them?

    Ive been dealing with the person over email, I was approved for one option and I said I didnt want it I was going for a different bike so now they are looking for finance for another bike for me. am I going to get charged for this?

    Starting to freak out, I dont have a spare $1000 to pay to someone Ive never spoken too.. on there website it just says if they dont approve I dont have to pay, but I have been approved I just didnt want it. Im really beginning to worry
  2. Pretty sure the law has a contract cooldown or something when dealing with finance - meaning you can pullout within 7 days or something.

    If you didn't sign your name on the dotted line, they can't charge you.

    Did you ever actually agree to it after you were approved?

    Don't quote me on any of this...
  3. No I didnt, I didnt realise they were a broker, so it looks like theoretically they can charge for "researching the market" for me. I called and they said If they get me an approval for exactly what I was asking for they can still charge for their finding services. She said its at managements discretion to charge and they just put that statement on there for people that use all there resources and waste their time..

    I changed my mind on the bike I wanted so I thought they may charge me twice, I think I will end up going with them as they are offering the best deal at the moment, luckily because it seems to be that if I got a few quotes off them but went with someone else they could charge me :/
  4. What state are you in because consumer law differs between states?

    What did you sign?
  5. I signed nothing. Im in Victoria.
  6. If you havent signed any finance documents, there is no contract.

    You clearly havent accepted their OFFER, and I would be advising you to just walk away and laugh when/if they ever come chasing you for money.

    But guys, dont apply for finance if you havent had everything explained to you.

    Consumer laws in finance are heavily in favour of the consumer, so they would be hard pressed to have a case against you.

    Especially if you havent agreed to any use of your information, or been advised of your rights under the privacy act. I would be wary of their 'approval ' status. Have you provided them with income information, employer details, copies of licences payslips etc etc. without these, an approval is conditinal on meeting these criteria, so is not really an approval anyway.

    I work for an automotive dealer, in the finance area, and have my own feelings about brokers. How can they be cheaper if someone (you) is paying them a commission or fee that you wouldnt have to pay if you went direct?

    We have a point of sale agreement with three finance providers, and there is a lot of training, accreditation, and liability involved in providing finance. Most of the legislation is in place to protect consumers. Very little to protect providers.

    You have the right to back out of finance right up to when it is funded, and even then, there are cooling off periods, where the smallest technicality will see you able to pull out.
  7. Good points, although I would also beware of agreeing to recorded verbal consent, esp. without carefully reading and considering the small print.

    OP, If you're going ahead with them, that's fine but if you're really concerned, I would get proactive and contact them to stop the process immediately, saying you didn't understand what you were agreeing to. Don't wait until they've fulfilled their part of the 'deal'.
  8. If you didn't sign anything you're not liable for anything. They haven't supplied you with anything.
  9. Financial transactions need to be IMPLICITLY explained to you, by regulation. If they didn't explain anything to you or get you to sign anything then they're breaching Prudential Regulations. Tell them to take a walk or complain to APRA.
  10. Pretty sure you meant "explicitly".
    • Like Like x 1
  11. If you read their FSG this will explain what services they can offer and how they are renumerated for them.
  12. Which must be given to a customer PRIOR to signing any contract.

    However many fsg's apply to insurance only.

    Depends on their agreement with the lender, ie agent or under the POS arrangements.
  13. Welcome back Mr FAT!

    As you were....
    • Like Like x 1
  14. Yeap. That's what happens when you're typing messages at work without the boss seeing what you're doing :]
  15. Right you are sir. The FSRA deals with FSG's and PDS's etc, and explains when they must be provided to consumers and how they are to be provided. Without going in to too much detail, I'd be very surprised if a mortgage/finance broker could conduct their business legally without providing an FSG (as they are arranging in, dealing with, or providing advice in relation to a financial product or service). This is regardless of whether they have their own AFSL or they are simply an agent of an AFSL holder. I don't know for certain though, but it's an educated guess that they would be required to have and provide an FSG to you.

    From memory the FSRA says an FSG must be given either before or when the advice/product is provided, or as soon as practicable after.
    • Like Like x 1
  16. Well, Im going to go with them because they've given me a good deal. For the initial approval they found for me they gave some details saying "every time we research the market for you we charge a fee". wouldn't that information be useful before they research the market for me? all i did was fill out an online form that said "obligation free loan inquiry" as I just wanted to see if I would get approved and how much I was looking at. They are a big company but I dont know, maybe im being paranoid about hidden costs, the impression I get is that if i turned around and said i dont want a bike anymore they will charge me 5% of all the loan amounts I was approved for..

    Thanks for your advice everyone..
  17.  Top
  18. #18 peter-reebok, Jul 22, 2012
    Last edited by a moderator: Oct 24, 2015
    Doesn't sound like no obligation to me.

    Don't be bullied into paying anything.

    Harassment and intimidation is VERY illegal under unconscionable conduct.

    Of course you can CHOOSE to do whatever you want.