It has been nearly 6 months since the banking royal commission was established. At the heart of the investigation is the banking industry’s promotion of an aggressive, sales-driven culture with an emphasis on profit at all costs. For those who don’t know, the “BRC” is simply an investigation into key Australian financial service entities and whether they have historically engaged in any form of misconduct, be it bribery, forgery, irresponsible lending or selling of insurances to people who simply cannot afford them. In April, Craig Meller stepped down as CEO of AMP in light of findings that they had repeatedly lied to regulators. Commonwealth bank found themselves in hot water by conceding they had been charging financial advice fees to clients who had passed away. And to make matters worse, the commission heard damning evidence that staff at a major bank had allegedly been involved in a bribery ring covering multiple branches, forged documents and fake payslips, with bribes being paid in cash to staff who engaged in an incentive program to sign up new customers. Dozens of these staff have since been fired or resigned over the scandal findings since March.
Where there is smoke there is fire
Things are going to get worse before they get better, for the banks. However, this investigation is long overdue and will ultimately benefit the consumer at the end of the day. After all, it is in our best interests that the royal commission is protecting. The BRC will continue to run into next year with a final report due in February 2019, with an interim report due in September.
What does it mean for me and my novated lease?
Whilst the banks have a magnifying glass cast over their every move, it could mean that they’ll need to see more information, more often when it comes to lending money. Having said this, the novated lease finance approval process thankfully has not changed!
What’s involved in obtaining novated lease finance?
The banks don’t want to know the colour of your underpants just yet. When you’ve found a car, and we’ve given you a novated lease quote we can then proceed to the financial application process. On behalf of the financier we request your three most recent payslips and a photocopy of your driver’s license. These documents along with a privacy document and a standard application form will see you placed in the approval process which will typically takes less than 24 hours to get a response.
If your finance is declined, this means that the banks are not willing to lend money to you. Unfortunately, it is out of our control and the next steps for an individual would be to seek professional advice on their credit position.
Thinking positively, let’s say your finance application is approved, you can then proceed to the next step in salary packaging your new car! It’s pretty much the home stretch from here with final documents being the only paperwork remaining to complete. From time to time the banks may request further information in relation to your financial position, however we’ll keep you informed throughout the whole process so there’s no surprises.
May the finance be with you!