Consumers now in better position against big banks

The Royal Commission (RC) final report and its recommendations have helped level the playing field for consumers against big banks and insurers, according to Maurice Blackburn Lawyers.

Although the recommendations did not aim to rewrite the frameworks underpinning the financial services and insurance industry, they were pivotal to re-balance the interests of consumers against financial institutions, said Maurice’s superannuation and insurance law principal, Josh Mennen.

“These recommendations will help to level the playing field by delivering much better negotiating power to consumers in the products and services they are paying for across a range of areas, including mortgage broking and insurance,” he said.

Related News:

“We particularly welcome the call for an unfair contracts regime for life insurance as a major win for consumers.”

Mennen stressed it was important that consumers had confidence that if they entered into a life insurance policy in good faith this would not be avoided.

Similarly, the recommendation of enforceable code provisions with respect to the Life Insurance Code of Practice would serve the same purpose and help impose sanctions on any insurers who would breach the code.

Additionally, the firm welcomed the call to ban commissions for mortgage brokers, which often resulted in granting excessive unsustainable debt.

“Financial advisers have long been banned from collecting such commissions but somehow mortgage brokers have continued to ride the training commission gravy train with minimal scrutiny and this recommendation will help to ensure the law can now similarly catch up with respect to the mortgage broking industry,” Mennen added.

Finally, it should be acknowledged that this Royal Commission would not have happened or uncovered the many shocking stories it has without the significant contribution of whistleblowers, according to Maurice Blackburn.

“This inquiry has shown more than ever why strong whistleblower protections are crucial in Australia to clean-up corporate misconduct, and we continue to support reforms to deliver this including a reward scheme for those who speak out,” he said.






Recommended for you




Of course Maurice Blackburn love the removal of insurance commissions. When there are no advisers left to set up proper insurance policies tailored to a situation, clients will be left with the JUNK policies sold directly by the sales rep of the insurer to the customer. Or they will be left with the expensive and horrendus default cover offered by their industry super fund. The custoer will only realise that their policy isnt worth anything when they come to claim and the insurer will make it hard for the client to claim and them Maurice Blackburn can stroll in (on the no win no fee scam) fill in some paperwork and settle out of court for a fraction of the benefit amount, all whilst taking 30% of the total benefit.

These lawyers are so self serving, the must really hate the little people. How can anyone who works for Maurice Blackburn sleep at night? Probably on the waterbeds filled with the tears of the clients lives they have destroyed.

How exactly are the clients going to be better off?

Mortgage clients will be forced to go direct to the banks as independent mortgage brokers will cease to exist. This will destroy the supply chain of the smaller banks/borrowers. This will strenghten the oligopoly the banks currently have, which will drive prices up due to lack of competition.

95% of people will be forced to sort out their insurances themselves, and wade through the often complex insurance terminology and be uninsured as noone is going to pay for insurance advice on top of their insurance premiums. Then when everything goes wrong at claim time they will have no one to help them and no one to hold accountable other than themselves.

The title of this article should read. "Banks now in better position against small consumers". Of course Maurice blackburn will help clients with their insurance claims, for a substantial fee, which was oreviously offered for free by advisers as we were paid commissions to help the client out throughout the process.

Rubbish. Consumers are in a worse position
How does eliminating competition and driving business back to banks help the consumer?
From freedom of information release the banks sent a draft letter requesting terms to be covered and for commission to be short. The recommendations of royal commission is the biggest attempted theft and misinformation to ensure a reduction in competition and to drive consumer to banks and insurance providers eliminating competition. The Australian public is too stupid to understand this and the implications of these changes. Our representative the FPA have not acted in the interests of financial planners and instead have been focusing on self interest at the expense of their members. All Financial Planners / Insurance Agents need to unite and united can have influence. Firstly cancel your FPA membership. The FPA does not work for the financial planning industry and is more absorbed in its own self wealth. Why support such an ineffective so called representative body . Save your money. Use it to help yourselves. Lobby your local members. We have elections coming up. Stop fighting among yourselves and unite and form an alternative representative body promoting financial planning interests. This is your last chance financial planners before it is too late. Only united we can survive and portray an image of strength and be taken seriously. For the sake of Financial Planners, your clients, your business and your financial well being and future do something before it is to late. The time is now.
The cost of inaction is your extinction and your future. Remember it is not too late. Lobby your members of parliament, educate your client to the benefits of financial planning so they will be your advocates and educate the general public.Speak to fellow planners and work on strategy and campaigning. Your industry is at risk
Only united can we save the industry. All financial planners work together do not be divided by things like bank planners, industry planners, independent planners. Divided we fall. It is in your hands. Save your selves!!! Your future is in your own hands. Do not let your future be dictated by others.
There is no time to waste. Do it now

Add new comment