One Big Switch or big flop

[Jamie M]

if a swap is recommended it most likely won't be Resimac or first mac that's for sure....

That's a really good point.

Cheers

Jamie

 

[Propertunity]

One Big Switch writes first loans

One Big Switch writes first loans.

http://www.theadviser.com.au/breaking-news/6186-choice-campaign-off-to-slow-start

 

[Rolf Latham]

Update

http://www.theadviser.com.au/breaking-news/6186-choice-campaign-off-to-slow-start

I dont know, do I laugh or cry

yes I am making assumptions, but at 10 to 70 pts discount I can hear the click click click of the shears fleecing of many of these beneficiaries.

And making a hopeful claim to have all x loans settled in 4 weeks, wow, I am impressed how they believe they can control the outgoing financier.

I do hope many of the beneficiaries of these new products arent being stitched up with Fast Refinances.

Again just examples from my own book, but for many folks moving under this scheme, there was never any need to,,,,,,

ta
rolf

 

[Rolf Latham]

Choice Shonky Awards

Hi Rolf , CHOICE held its 6th annual Shonky Awards, for bad goods and services, this morning at Simmer on the Bay for over 50 media representatives.

There are some nice ones in there, but I note the ONE big switch didnt make the same grade as the slimming pants or slimming teas

ta
rolf

 

[Propertunity]

Industry slams CHOICE conversion rates

Industry slams CHOICE conversion rates:

http://www.theadviser.com.au/breaking-news/6546-industry-slams-choice-conversion-rates

CHOICE's One Big Switch campaign has managed to refinance just 4 per cent of its registered borrowers five months after the campaign was launched.

Speaking to the ABC last week, One Big Switch co-founder Lachlan Harris admitted the campaign had only managed to refinance 1,600 of the 40,000 registered borrowers.

But while 1,600 borrowers have finally changed their lender, 38,600 remain in limbo while the refinancing process drags on.

 

[Rolf Latham]

Industry slams CHOICE conversion rates:

http://www.theadviser.com.au/breaking-news/6546-industry-slams-choice-conversion-rates

gee someone else picked up on the 4 % conversion rate.......................

ta
rolf

 

[Mick C]

With limited lenders on their panel of lenders + none of the big four who are offering 1%+ discount ...they got no chance!!!!

Regards
Michael

 

[Marty McDonald]

1600 x $280,000 x 0.5% = $2,240,00

Not bad for a few months work

Consumers get screwed again

 

[Spectre]

if consumers got a better deal and choice assisted in some way then I cant begrudge that side of things.
Choices conversion rates and strategy etc are another issue. I suppose the question there is if they actually made a profit at the end - unless they're a non profit - i dunno.

 

[Rolf Latham]

if consumers got a better deal

I do think this is one area where we are making some assumptions.

Almost ALL enquiry that comes to us for a refi for "BETTER RATE" get sent back to their existing funder for discount chase, and by the time thats done, one in 10 or so we can actually help and provide some value to.

So perhaps thats why 1600 of 40 000 enquiries have been refinanced and the balance have been helped to get a better discount with their existing funder.

ta
rolf

 

[jonmardell]

Apparently NAB have jumped in with a 1% discount of the variable rate making their variable 6.22% according to phone call a customer received this morning.

 

[Rolf Latham]

Apparently NAB have jumped in with a 1% discount of the variable rate making their variable 6.22% according to phone call a customer received this morning.

Well that would be better than the 6.29 that I have direct experience of with a OBS client.........

6.22 would actually provide some real advance on what Joe and Mary can get from almost any lender, especially or a sub 250 lend.

Hopefully NAB will do a better job on the actual credit side, than other lender participants have been

I have inherited whose file has been "fried" even before a val was done : ( by one of the lender "panel"

ta
rolf

 

[Rolf Latham]

Hi

Further update from recent media and I quote

"We ( choice) received a fixed $ 250 fee per switch, which was to pay for the running of the campaign, and that was paid from OBS fixed commission rate of of .50 %. There were no trail commissions, so both these fees were revealed openly with each offer"

" we just wish there were industry standards which were as transparent and as straight forward as that"

If I wasnt confused before, I am now. The above implies that OBS only had one ( or a very limited range of funders), which is something that in my view is not consumer friendly.

The industry standard under legislation requires full disclosure not only of what commission MAY be paid ever!), but who it is paid to and in what splits etc.


I will tommorow seek direct clarification from Choice as to what that actually means.......and actually ask Choice to come on board here to present their position. Not in defence, but as in clarification.

As a paying member of Choice for a few years, I am interested in the truth.

ta
rolf

 

[Rolf Latham]

yawn

http://www.brokernews.com.au/news/newsletter/122397/

Think we can close the thread now

The evidence seems a little clearer

t
rolf

 

[Terryw]

yawn

http://www.brokernews.com.au/news/newsletter/122397/

Think we can close the thread now

The evidence seems a little clearer

t
rolf

from that article

Those who switch lenders stand to save an average of $375 each, the group claimed

What is the definition of 'churning'?

 

[Rolf Latham]

from that article



What is the definition of 'churning'?

one makes butter to put on bread

ta
rolf