Wrapping?

[Evachange]

I am posting as I would be interested to hear what some of the other brokers and forum posters see happening with wrapping/vendor finance once the new credit laws come in.

It seems that at the moment this is a grey area, what will happen once you have to have a credit licence?

Any thoughts?

 

[Qlds007]

Cant see much changing Alex.

In some States currently you need to be Licensed to provide Instalment Finance facilities so i think it will be a good thing if more and more people are accredited and compliant.

Be suprised how times our wrap Company gets asked whether under our Instalment Contract the purchaser can register a caveat when the last company they approached said NO. Amazing that even though clients have a legal right to do so certain financiers word their contracts in such a manner that they are clearly illegal.

To me regulation is a good thing albeit about 20 years too late.

 

[bcoombs]

I bet ASIC wouldn't know what this type of financing is. However at a minimum the affordability rule would apply.

Having been to the ASIC roadshow it seems that the only people that are to be regulated are the brokers like us that are MFAA/FBAA brokers and pay $450 for the honor. Dodgy car dealers - phase 2, 49% short term lenders- phase 2, lawyers exempt, registered tax agents exempt. If your an accountant referring to one lender as long as you stipulate your commission, your clear. Bank teller ..... your fine you work for a bank. So that ***** Cathy Cummings is right.... broker regulation not finance regulation as I thought.