Att: Finance Brokers - Is this true?

I met with a finance broker yesterday and he said that in order for him to put through a loan for a new client, he must meet with them face-to-face or via skype or similar tele-video as that is required legally via some financial brokers association or the government?? (I don't recall who governs this, but apparently he said it was the law)

I said I was surprised by this as I know my finance broker is in Melbourne and did my loans without ever doing a skype video call or meeting with them. I also was curious as many brokers on this forum deal with investors from across OZ, and my assumption is I doubt many or some of them never meet with a new client - they just do everything over the phone or via email, etc.

He replied to my surprise, with maybe those brokers have some special relationship with a certain lender which allows them to not have to meet with the client face-to-face or via video call, but he said if he doesn't do this, then he could end up in a lot of trouble.

I said to him, I guess then, unless the client flew into to see him, then he wouldn't be dealing with too many out-of-town clients then.

So, is it a legal thing that as a finance broker you must physically meet a new client face-to-face at least once or do a skype or similar video call?

Just curious - I won't hold you to it...

 

not true.

 

Definitely not true.

Some head groups will impose this restriction on their licensees, but the law does allow for non face to face meetings. Were that not the case, online lenders would be out of business.

Conveyancers and solicitors are now under a similar identification scheme. When was the last time you met a conveyancer?

 

Yes, the broker may not have a credit licence but be an authorised rep of someone with a licence - so will have to follow their rules.

 

ANZ also has a requirement that the broker witness the borrowers signature - or they used to the last time i used them about 2 years ago.

 

I had to go through this process recently. Lawyer is in Melb and made a booking with ZipID.
You then have to log into an online booking site and select a suitable date/time.
Once confirmed, a courier (Toll Priority in my case) will swing round and verify your signature/ID and take a photo of you. This then gets uploaded to a portal accessible by the lawyer.
Costs range from $50 for a 2hr window to $70 for a 30min window from memory.

 

We also use ZipID in many cases.

 

I always see the client face to face in some capacity - skype, face time, zoom all make this super easy.