Dodgy loans crippling seniors
West Australian police have warned vulnerable pensioners about the dangers of entering into new loans with fraudsters claiming to be brokers who organise crippling loans that end up being misappropriated.
This follows the recent case in Perth of British migrant pensioners, Michael and Ann Burniston, who handed $285,000 to a finance broker for investment. They never saw the cash again and were then landed with a $350,000 home loan placed in their name by the broker.
Mrs Burniston said the home loan was run through an overseas bank after the broker claimed the Burnistons were self-employed property managers.
“They gave a 30-year loan to people in their 60s who earn $29,000 a year,” she said.
Consumer advocate, Denise Brailey, said that the Burniston’s case was one of hundreds around Australia which involved asset-rich but cash poor pensioners.
She said that some mortgage brokers had signed up pensioners for home loans knowing that many banks did not personally interview applicants and establish their true financial situation and awareness of their potential commitments.
