No Interest Loans

[alexlee]

Hi, All,
I remember seeing something about a company in Oz offering nil-interest loans. There was lots of brouhaha about it. Anyone know what happened to it? Something about using securitising the income streams from the loan repayments, etc. Never did understand it.....
Alex

 

[eddievanhalen]

Currently out of action (temporarily perhaps) and being put through the ringer by ASIC , presumably as a result of an onslaught from the big banks.

http://www.derivex.com.au/company/updates.htm

Ed.

 

[kph]

Seems like it never went ahead either........

Maybe there was no interest in the 'no interest' loans ??

 

[alexlee]

It never made sense to me. If they can lend people money, get no interest and STILL manage to make money, why not take the money, buy Australian government bonds, and use the same technique on THAT? Surely interest from bonds is better than just no interest from a residential loan.

If something is too good to be true.....

 

[RichardC]

This is from their web site:

News

Home Page







News Update
1) How is the ASIC investigation progressing?
ASIC have issued four separate demands for company books and documents to be delivered to them. The first was January 13 2005 in direct response we believe to a formal complaint from the MIAA, the national lobby group that represents the bank and mortgage industry in Australia. The second was February 2 2005, the third on April 13 2005 and the fourth and the most recent on June 28th 2005. ASIC refuse to indicate the nature of the alleged breach/s and continue to maintain that their banking industry complainant remain anonymous.

2) When will a determination from ASIC be forthcoming?
It was anticipated ASIC would conduct a review in good faith and that it would be concluded in a reasonable period of time. That has not been the case in our view. We can only await their determination and take steps to qualify such determination subject to local legal advice.

3) What is Derivex's position on this matter?
The Dxxxxxx Group reserves it's legal rights to claim all costs and any damages incurred during the period commencing 13th January 2005.

© 1996, 2005 All rights reserved Dxxxxxx Group

Could I suggest taking this at face value and not re-opening a bitter unrewarding debate.

 

[rumin]

Hi..,
Does anyone else remember the 'starr and Bowkett' No interest loans where you signed up and through a lottery style system you would either be lucky and be able to start your loan straight away or keep having to pay back the nil\interest loan until your number came out ..??

 

[Rolf Latham]

Hiya

Yes, but these were a supplementary style loan rather than an outright mortgage. Good idea for the time

ta

rolf