The consumer groups that were part of a forum with the mortgage-broking industry have quit en masse, citing a lack of progress and willingness to change.
Choice, Consumer Action Law Centre, Financial Counselling Australia and Financial Rights Legal Centre pulled their representatives from from the Combined Industry Forum.
‘Buying a home is one of the biggest decisions someone can make, said Fiona Guthrie, chief executive of Financial Counselling Australia.
‘It’s essential that any advice is given with a consumers’ best interest in mind.
‘Removing conflicts is the only way to make sure that someone buying a home gets genuine advice about the best option for them.’
The forum was initiated by the mortgage-broking industry.
The consumer groups their discussions over the years have failed to deal with concerns about commissions or calls for brokers to act in the best interests of their clients.
‘Mortgage broking lobbyists continue to swarm on Parliament House in an attempt to derail crucial recommendations from the Royal Commission Final Report, showing the sector cannot be trusted to stand up for everyday home owners when it comes to reform,’ the groups said in a statement.
They are urging the government to implement the recommendations of the royal commission into the financial services industry, including ending trail commission payments to brokers for the life of a home loan and phasing out commissions paid by lenders to brokers who push their loans.