Fringe lenders prey on vulnerable borrowers
A survey conducted by the NSW Consumer Credit Legal Centre has found that borrowers who refinance their mortgage because of financial difficulty usually do so to their own detriment. The additional costs of refinancing often mean that consumers lose more of the equity in their home than they would otherwise have retained. The survey also found none of the borrowers surveyed had their own solicitor, but were referred to solicitors by the brokers and lenders involved. THE NSWCCLC identified a small group of lenders, brokers, solicitors and accountants who offer expensive loans to vulnerable borrowers with a view to recovering the debt and considerable fees from the security property.