All finance brokers are not the same – Peak body launches public push to protect consumers

The national peak body representing Australia’s finance brokers says while consumers understand the benefits of using brokers, they should only use members of the association if they want a second level of protection and support.

CEO of the Finance Brokers Association of Australia (FBAA) Peter White said it was time to increase public recognition of the respected peak body, because only an FBAA member broker can offer a structured dispute resolution service.

Noting that it’s not unusual for a customer to have a disagreement with a lender; Mr White also pointed out that some brokers have recently been banned by the government regulator for unethical practices.

“The number of people using finance brokers is increasing because people know they receive better choice of rates and lenders as well as industry expertise, but what many don’t realise is that every broker is not the same,” he explained. “When you see the FBAA logo on the door of the broker, you’ll get the same peace of mind as knowing you are dealing with a CPA accountant or another professional who is aligned with, and accountable to, a professional peak body.”

He revealed that eleven brokers have recently been prosecuted by ASIC yet none are FBAA members.

“This proves the importance of dealing with an industry association that sets a high standard and is willing to put the public first.”

As well as a higher ethical standard, Mr White explained that the FBAA has the only structured dispute resolution system.

“If a customer has a dispute about any part of their loan transaction, there is an process set up through the FBAA, meaning the dispute will be independently reviewed and resolved.”

Mr White said the message when borrowing was simple – “Use an FBAA member and we stand with you.”

FBAA members can be found by downloading the FBAA smartphone app or going to the website www.financebrokers.com.au