Westpac moves to thwart property liar loans with international credit checks

Westpac moves to thwart property liar loans with international credit checks
Westpac moves to thwart property liar loans with international credit checks

Westpac Group is set to use three leading global credit agencies to track liar loans to boost its loan scrutiny.

Westpac will advise its borrowers' their credit information will be soon be screened by Equifax, Experian and illion, which is formerly Dunn and Bradstreet Australia.

The Australian Financial Review said it will allow Westpac and its subsidiaries, Bank of Melbourne, St George Bank and BankSA to review all debts of the applicants, including drawn lines of credit, rather than just credit inquiries, and any defaults.

Equifax, which is headquartered in the US, claims its collects information on more than 800 million individual consumers and 88 million businesses worldwide.

The Australian Prudential Regulation Authority and the federal government have been pressing for better credit checking to reduce lenders' exposure to defaults.
 
One in five property borrowers are exaggerating their income and nearly half understating their spending, according to recent analysis of loan applications by online property lender Tic:Toc Home Loans.

The issue of liar loans' flared when investment bank UBS estimated last year about 30 per cent of home loans could be affected.

 

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Westpac Liar Loans

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