ABC The Business does the Banking Royal Commission

By Leith van Onselen

ABC’s The Business has done an interesting segment on the Banking Royal Commission, which is worth a look.

It profile’s a young women named Amy Nivison-Smith – a 22 year-old Sydney resident who upon just finishing school, and with no savings history, was approached by NAB to borrow $35,000 for a car at an interest rate of around 15%. NAB is now being accused of predatory lending and failing to meet its responsible lending requirements.

Expect to hear many such stories as the Banking Royal Commission begins proceedings today.


  1. Don’t expect to hear too many stories. Many NDA’s and gag orders are still in place.

    Remember, this is the Commission the Bankers asked for. They want one run by their friends, not one by a future, possible less friendly government.

    • RC expensive bread & circus show for the masses who will pay through the nose like the swine they are. Meanwhile MSM & ABC get some serious journalism in as they report on daily performance/what a joke?

  2. She applied for the loan. She got it. She read the paperwork. She signed the documents. Wear it.

    There will be too many stories like this – consumers want the money, they want the cars, the credit cards, the mortgages and then try and squirm out of paying for them claiming predatory lending rather than their own rank stupidity (which it is).

    Tough titties.

      • Wiley Wolf January 22, 2018 at 2:01 pm
        Yr correct about the vehicles, everyone now has a car. All girls now have a car at 17.
        Currumbin alley often has the car parks full at 4:30 am with surfers
        But in SP itself, on the footpaths and in the shops at say the mall, MT apart from school kids

    • If NAB were lending their own money, without taxpayer backed guarantees, you’re right, “who cares”, private business.

      If NAB are lending money like crazy knowing they’re backstopped by us, I fucking care. Similarly, given that employers now pay in digital terms (not physical cash) a bank is basically a necessity for earning an income. Banks should be careful with the money they’re basically handed by the ATO just because the ATO wont accept hard cash.

      • +1
        This is the crux of the whole banking issue — implicit taxpayer backing. It creates a moral hazard issue which then leads these pr!cks to engage in all sorts of behaviour that they wouldn’t otherwise do.

        The best thing you can do is cut the banks adrift, inform the public and then have the banks prove to depositors that their institution was a ‘safe bet’. A change banking culture would be swift as deposit-flight took hold at the more ‘racy’ institutions.

  3. Why blame NAB? The greedy person here is Amy, the one who bought a $35,000 car on a personal loan as her first car.

    • If a homeless person on the streets asks me for a $5k loan and says he’ll pay me back with interest at 16% and then he fails to pay me back, who’s fault is it?

      • ErmingtonPlumbingMEMBER

        Depends,….how many alternative payment options are you prepared to consider?
        How many homeless person “Wristies” add up to $5000?,….500?,….that’s a lot of Wristies!

    • Exactly
      However there is a whole chorus of others here, eg jacob r2m, jb timmeh triage gavin ep etc who think the govt should bail em out.
      they are in for a rough time as the system goes under.

      • No I think the fault lies on both sides to be honest. The borrower is clearly an idiot and the bank has taken advantage of that through pure greed. Where is their risk assessment? If the banks were not so lax with lending and had stricter standards we wouldn’t have a run away housing market.

        I think the woman in the video should 1.) Sell the POS – which will end up costing her $50k+ by the time it’s paid off and be worth about $15k. 2.) Buy a used car as her run around 3.) Pay back the difference between what she gets for it now and what she owes 4.) Never use finance at 16% to buy a liability.

        But the bank has some role to play here too..

    • @WileyWolf: Savers will be screwed, not the borrowers, who will have their debts “forgiven”
      Next we are going to have to bail-in the banks via depositors and savers, with legislation in this regard being prepared at the end of last year:

      The Bill before the Senate, “Financial Sector Legislation Amendment (Crisis Resolution
      Powers and Other Measures) Bill 2017”, gives the Government and APRA new discretionary
      powers to confiscate bank deposits.

    • For a new car, a secured car loan will be a much better deal, and the other major banks is offering it at half the interest rate NAB is offering. Even switching her over to the 5 year fixed rate in NAB would cost around the same as the 7 year variable, but she’ll pay it off 2 years faster!!

      Beyond the ability to repay, it is predatory because if the borrower bother to do a search online, she can find much better deals.

    • The wife and I are considered to be a high income household. Our current car was 14k second hand… over ten years old now still going strong. Pull the other one…

      • Snap. Ive got a 7.5k clanger. I love parking it where ever i want and hoping it gets stolen so i dont have to pay to fix it again the next time something breaks.

    • Agree, she should be buying a push bike. 2K tops. Maybe she aspires to those estate agents who drive around in luxury (leased) cars worth over $100,000.

  4. Where were her parents?

    Or, even the auto dealer [hire purchase would have been better]

    This is just, sad.

    • Denver. Joseph Lopez had a chilling answer when investigators asked why he had shot a 19-year-old woman in the head around Christmas and then left her body in a rural area near Denver: she asked him to.
      Lopez said that Natalie Bollinger had put an ad on Craigslist that said “I want to put a hit on myself,” according to an affidavit obtained by Denver ABC-affiliate KMGH. Lopez responded.
      Lopez, 22, was charged on Thursday with first-degree murder in the December 28 killing of Bollinger. He is in jail with no bond, scheduled to appear in court again on Wednesday in a case that has shaken this part of Colorado since late last year.

    • Good question. Although Amy is four years an adult. However her parents are there now, teaching her the growing Aussie tradition of blame someone else and get a payout or a debt forgiven.

  5. MaryleboneMEMBER

    Saw an old footy mate heading up Bourke St this morning so quickly stopped and said hello. I asked him what he was up to as last time I saw him he was a government lawyer.

    He was on his way to the RC to which I replied ‘Don’t let them get away with this compressed 6-month, glossed over, whitewash bs’. He laughed and said ‘that’s what we want!’ Turns out he’s now counsel for one of the banks.

    Whitewash indeed…

  6. In my lifetime (over 65yo) I have owned 4 vehicles, the first one being a second hand car and the other three were new. None of them were priced at more than $28k in today’s $ss, and I had most or all of the cash when I bought them. I can easily afford to pay cash for a car over $50k, but that would not be in keeping with my very working class neighbourhood, so I will stick with my 8 year old Civic which is more than adequate for my needs.

    Yeah for sure the bank’s action was heartless and predatory.

    But this young woman is just plain thick as are her parents. I think they need to take responsibility to own this decision and learn a valuable lesson in money management. The girl is young enough and has plenty of time to recover from this misstep.

    • Who cares about the girl? What I want to know is how many stupid loans the bank has given out? Cos I sure as shit don’t want to be on the hook because the bank didn’t want to say ‘no’.