Consumer Protection: Is You Mortgage Broker Licenced?Posted by Sargent Owen on February 15th, 2021 In December 2009, the Australian Federal Government passed the National Consumer Credit Protection Act 2009 (Cth) ("NCCP Act"). This new Act affects all businesses which are engaged in providing credit or providing credit services to consumers, including intermediaries. Not all matters concerning credit provision are regulated by the new Act, however residential investments are now regulated. This new Act required that all mortgage brokers apply for an Australian Credit Licence ("ACL") by 31 December 2010 if they wanted to always provide these types of credit services. best mortgage broker melbourne that are unable to have a licence could possibly enter into an advertisement relationship using a licensed mortgage loan officer so that you can provide these credit services. A Finance Group that has prevailed in receiving a Australian Credit Licence has demonstrated their concern for consumers. This can be a very important factor to protect consumers to ensure that unsuitable credit is not arranged for consumers and that companies must engage in responsible lending practices. There are civil and criminal penalties established under the NCCP Act for your provision of unsuitable credit products. mortgage broker truganina 'm all to protect the borrower so that they aren't getting "ripped off". Whilst only signing up to consumer loans during this period we apply the identical basic principles to "unregulated finance" like leases and commercial property loans. When you sign up for your loan which has a mortgage broker, they're going to consume a specific process set out in the Act. Make enquiries: Your lenders must make reasonable enquiries into your financial position, requirements & objectives. Verification: Your large financial company need to take reasonable steps to verify your financial position. Preliminary assessment: From the information gathered from steps ones and a couple, your broker must make a preliminary assessment as to which loan(s) are appropriate or not before recommending these phones you. This is only area of the process and if you have queries about about borrowing money, arranging loans for property, vehicles, small business ventures or equipment leasing or computer rental, your finance broker will be the right person to question. So, why use a Finance Broker? Because finance mortgage broker footscray on the market... they actually do the lower limb work saving you hours of your energy and funds searching through information that is certainly so confusing. A finance broker is often a worthwhile asset in enabling your loan approved and since you only take action if you want to, they actually do all of it day, everyday!Like it? Share it! More by this author |