Dr Brandson's Story About NAB

Bad Banking Experience - Full Story: 

In 2004 and 2005 the local National Australia Bank (NAB) gave a member of my family loans under inappropriate circumstances. The bank is alleged to have engaged in unconscionable predatory lending - aka maladministration of lending. This involved the use of incomplete and falsified Loan Application Forms to give a loan to someone that did not have the assets or income to handle such a loan. You may recall around that time - and for some time afterwards - banks and their behaviour were exposed regularly in newspapers and various current affairs programs. The NAB has a well-recognised and documented history of destroying families and lives with these types of lending practices. You may also recall NAB's very expensive Breaking Up advertising campaign. This was needed because the bank's brand and image was so badly damaged it required urgent resuscitation (my campaign will detail more about that soon).

In 2007 NAB tried to repossess our family home in a very distressing way. I was able to refinance the loan with another bank. The result of that loan: significant family and financial turmoil - just like many of you have experienced.

Despite numerous requests NAB refused to discuss this matter with me until October 2013 when I went public with several stories in the mainstream media. Once discussions commenced I managed to get the documents I needed to prove the bank guilty of the charges I have made against them.

GPs like me see people with even worse problems than I have had to deal with. Doctors understand the stress people face in their lives - often through no fault of their own. I have a big problem when a corporation deliberately targets a family and causes the sort of turmoil that we are dealing with here.

Many others have been targeted by banks in a similar way.

"It is time to take a stand."

Once I began researching this issue it became clear that the banks' business model thrives on manipulating customers into the maximum possible debt. People will thus end up paying a large portion of their income to the bank. The bank is happy if you are left with just enough so you can keep working and servicing the debt.

But it doesn’t worry the bank too much if you fall behind. Then you will have your property taken by the bank or you will be forced to sell it - usually at a loss. The government has failed to help - providing only a token appearance of action via ineffectual regulatory authorities such as ASIC, APRA and FOS. Various Senate investigation routinely fail to satisfy victims.

The business model used by NAB was very simple, is not acceptable, needs to be investigated and reformed:

Bank representative identifies an appropriate target. Perhaps an Asset Rich Income Poor retiree. Maybe a high income earner or someone with some sort of relationship to such a person.

                        Inappropriate loan is given.
                        Commissions are earned.
                        Profits are taken.
                        Dividends are paid.

However for the so called client –

                        Interest is paid.
                        Fees are paid.
                        Penalties are gouged.
                        Assets are seized.
                        Families are destroyed.

There are plenty of examples of business practices that were once considered legitimate that have subsequently been outlawed or changed.

"If no-one takes a stand - Nothing will change."

NAB had been given good opportunities to settle but refused to act in good faith by using delay tactics, obfuscation and deception. The Financial Ombudsman was of marginal help because the Terms of Reference they operate under favour the banks. NAB’s lawyers are aware that if the case went to Court they would likely lose. Regardless -  I prefer to settle out of Court. There are many reasons for this but the most important ones are that I do not want to waste anymore time and money on the issue. Also the law is such that even after a successful legal case I would only recoup a fraction of the damages the bank has caused me and my family to suffer. In other words - the law also favours the banks. For the banks to change their behaviour they must cop severe penalties. They must fully compensate their victims.

I founded Bank Reform Now because I am determined to show how when good people get together we can hold corporate criminals to account. The banking system is in need of major reform.

I hope my story and the stories of others will be the trigger for a groundswell of public demand for change in how the banks operate. Banks must no longer be allowed to get away with activities that cause so much harm to so many people and families.

It is important for people to realize that even if you have a loan with a bank that you are comfortably handling you are still being ripped off. The way the government allows the banks to operate causes damage to every one of us – even if you don’t have a loan you are being damaged. This is why reform is urgent.

Part of the settlement I proposed to NAB included a contribution of a significant sum by the bank toward mental health programs in rural Australia. NAB wasn't interested in helping. Rural communities have well and truly seen the consequences of financial pressure and poor bank behaviour - particularly on farmers and small business owners.

Financial pressure is a big cause of depression, anxiety, alcohol & drug problems - and in the worst cases - suicide. NAB doesn't care - people are considered entities to drain money from. If some clients become suicidal so be it - the profits and bonuses must go on.

I will do whatever it takes to bring about meaningful reforms and justice for bank victims. I would like help from the community. Please join me. If you have a story showing examples of predatory lending that you have experienced use this website to tell the world your story and how it affected your family or business. Also if you are a bank employee with information about this sort of lending we would appreciate hearing from you.

The amazing thing in my story is that I did not agree to the bank loan that was so much against my interests. The loan was not in my name! I was not a signatory! I was not a guarantor! This could happen to anyone.

"Someone had to take a stand - It might as well be me"

"I have the ability and the stamina. I won't give up until every Australian can get the same compensation when a bank uses fraud to rip them off...!!"

This is my promise - Dr Peter Brandson

How My Life Has Been Affected: