Lenders' deal 'stifles competition'
March 13, 2009
MyRate has now lodged a complaint to the competition watchdog in relation to the deal between Aussie Home Loans and GE.
MyRate claims that they are fighting for the rights of the Australian Consumer by speaking out against the deal where by GE is waiving the DEF fee if it's clients refinance with Aussie Home Loans.
As GE exits the Australian Mortgage Market it is trying to get as many of their client to refinance as possible. This decision has left many broker businesses on the end of a bitter stick as their trail book reduces due to the deal with Aussie and GE's decision not to pass on any rate cuts, thus forcing borrowers to look elsewhere for finance.
MyRate's managing director Kevin Sherman said it had lodged a complaint with the Australian Competition and Consumer Commission, claiming GE Money was limiting customer choice and "stifling" healthy market competition.
He said GE Money was penalising borrowers if they chose not to use Aussie.
