I have a major concern with the recent announcement that a class action may be initiated against the West pac bank for inappropriate loans to borrowers, some of which may have multiple investment properties.
The class action may be taken on a assumption that the borrowers were accepted for loans that they couldn’t afford to pay and due diligence by the bank didn’t go far enough as to highlight the lenders inability to repay the loan.
There are some interest only loans coming up where the borrower have to start paying the principal off the loans as well as interest.
Having property values coming down in some cases will have borrowers loans being valued much more than the value of their properties, which leaves them in a situation where they may have to sell the investment properties.
Some property investors have made a heap of money during the good times borrowing from banks, but I am not hearing any complaints from that group there are always downturns, winners and losers, just ask any one that has held Shares.
My beef is that the banks and the reserve bank have catered to borrowers with low interests rates for the good part of the last 15 years creating a false economy that has stimulated the realestate, building industry and all other off shoot products and businesses.
This has been good for the economy, but has come at a cost to people that have been responsible by saving there money at the expense of people borrowing money, the banks have totally been focusing on lending out money to borrowers while neglecting savers with rubbish interest rates.
Having people trying to save for there retirement and trying to be self funded is extremely hard given the extremely low interest that is being paid by banks, people relying on income from bank savings are being screwed.
Is there a possibility the banks have been taking some of the savers interest to boost up there profits if this were to be the case would retirees and savers have a case for a class action also to have there lost interest reimbursement.
It just seems unfair that people that are responsible and try and save money have not been rewarded by the banks, these are the people that are trying not to be a burden on the tax payer by getting a pension when they retire.
Surely out of fairness there should be a investigation into why banks have been paying low interests rates for savers on behalf of retirees and savers .
I am no a expert in economics just a ordinary man that tries to save money and invest knowing the risks I just see that there is a imbalance between how borrowers are treated to how savers are treated and something needs to be done.
This class action is typical of a society that takes no personal responsibility for there actions a society that has been brainwashed to thinking that property never goes down and everyone has to be a winner, now that some reality is setting in and people are losing its someone’s else’s fault in this case the banks.
I not defending banks by any stretch but taking out a loan is a choice not a order and people should know what they can afford to pay back, I doubt you would hear about this if there properties where sky rocketing.
I think I might take out a loan and lie about what I have to gain the loan then sue when the property value goes down seems to be do the wrong thing and get rewarded.
