Credit guide

Introduction

This Credit Guide (CG) provides you with important information about Purple Circle Financial Services Pty Ltd and its Credit Representatives, who may provide you with credit services described in the CG.

As well as giving you important information that will help you decide if you want to use any of these services, it provides important information about:

• who we (Purple Circle Financial Services Pty Ltd and our Representatives) are,
• the credit services we offer to help you evaluate and make an informed decision about whether to use the services described in this CG,
• the remuneration that we and relevant persons receive for the services,
• any arrangements which may influence our services to you,
• our Privacy Statement, and
• how we handle your complaints if you are not satisfied with the services provided.

About us

Licensee:

Purple Circle Financial Services Pty Ltd holds an Australian Credit Licence issued by the Australian Securities and Investment Commission (ASIC). We conduct business through a network of finance brokers who are appointed as Credit Representatives under our Licence. Purple Circle Financial Services Pty Ltd is responsible for the advice and conduct of your finance broker as set out in this Credit Guide and will ensure they always act within your best interests.

Broker Group:

Purple Circle Financial Services Pty Ltd has a broker arrangement in place with Mortgage Specialist Pty Ltd (“broker group”), ACN 050 601 093, Australian Credit Licence No. 387025. We obtain mortgage aggregation services from the broker group.

Credit Representative:

A “Credit Representative” is a person who has been authorized by a credit licensee to engage in specified credit activities on our behalf.

CREDIT GUIDE

Introduction

This Credit Guide (CG) provides you with important information about and its Credit Representatives, who may provide you with credit services described in the CG.

As well as giving you important information that will help you decide if you want to use any of these services, it provides important information about:

• who we (Licensee and our Representatives) are,
• the credit services we offer to help you evaluate and make an informed decision about whether to use the services described in this CG,
• the remuneration that we and relevant persons receive for the services,
• any arrangements which may influence our services to you,
• our Privacy Statement, and
• how we handle your complaints if you are not satisfied with the services provided.

Credit Assistance

Our Credit Representative is authorised to engage in credit activities including providing credit assistance on behalf of Licensee. They can provide you with the following Credit Assistance:

• give you information about loan/lease products or related services,
• consider whether you are eligible for a loan or lease or any related service you requested,
• suggest a suitable credit contract, an increase to your credit limit and/or that you retain your existing credit contract,
• assist you to apply for a credit contract or an increase in your credit limit,
• recommend a suitable consumer lease or to retain your existing consumer lease,
• assist you to apply for a consumer lease.

Our Responsible Lending obligations to you

We are obliged to ensure that any loan or increase to a loan we help you to obtain or any lease we help you enter is not unsuitable for you. To decide this, we will need to ask you some questions in order to assess whether the loan or lease is not unsuitable, and within your best interests.

To make this assessment, we must make reasonable enquiries about your objectives and requirements and for the credit contract or credit limit increase. We must also make reasonable enquiries about your financial situation and take reasonable steps to verify this information.

It is important that the information you provide us is accurate, complete and up to date, as if we proceed on incomplete or incorrect information, you may be in breach of your legal obligations to the lender.

We will not be able to give you Credit Assistance if our assessment shows that:
• you will not be able to meet the proposed repayments without substantial hardship, or
• the loan or lease will not meet your objectives and/or requirements.

We will prepare a written Statement of Credit Assistance. You can ask us for a copy of this Statement any time up to 7 years after we provide you with Credit Assistance. To request a copy please contact us.

We will provide you with a copy:
• within 7 business days after the day we receive your request, provided you make the request within 7 years of the date of the Preliminary Assessment, or otherwise
• within 21 business days after the day we receive your request.

We have an obligation under the Anti-Money Laundering and Counter Terrorism Finance Act 2006 to verify your identity and the source of any funds. This means that we will ask you to present identification documents such as passport and driver licence. We will also retain copies of this information. We cannot provide you with Credit Assistance if you are unwilling to provide this information.

Conflicts of Interest / Related Companies

As a client, you may also be referred to any related or other company of which your broker may be a director or representative of, such as Accounting, Financial Planning, Real Estate, Insurance or Property Development. These industries operate under a different authorisation structure and the services provided are distinct from the services provided under mortgage broking. There is no obligation to utilise the referred services offered by your broker and you are welcome to compare services to those in the market prior to making any commitment.

Additionally, we may access various reports via our lenders such as credit or property reports. These services are offered free to brokers and we believe it does not influence our recommendations.

If during the assessment of your information provided, any potential conflicts are noted, these will be outlined on the Statement of Credit Assistance that will be provided to you prior to lodgement of your application to a lender.

Lenders and Lessors

Subject to meeting credit criteria, we will be able to assist you to obtain loans and leases from a broad range of lenders and lessors through our broker group.

The following are the lenders or lessors with which our licensee conducted the most business during 2020/2021: ANZ, CBA, ING, Macquarie, NAB, Westpac

The following are the lenders or lessors with which I conducted the most business during 2020/2021: SunCorp, Bank of Melbourne

The following are the lenders or lessors with which I have available for access:
86400, ADELAIDE BANK, AMFIN, AMP,
ANZ, Auswide Bank, Bank Australia, Bank of Melbourne (Vic),
Bank of Queensland, Bank of Sydney, Bank SA Bankwest,
Better Choice, BMM, Beyond Bank, Bluebay Home Loans,
Bluestone, CBA, Citibank, eMoney (AFM),
Firefighters Mutual Bank, Firstmac, Get Capital, Granite Home Loans,
Heartlands Senior Finance, Heritage, IMB (Vic), ING,
Judo Bank, Keystart (WA only), La Trobe, Latitude Financial,
Liberty, Macquarie, ME Bank, Medfin,
MKM Capital, Mortgage Ezy, Mortgage Mart, Move Bank,
My State, NAB, NLG Leasing, Paramount,
Pepper Money, Plenti P&N Bank (WA), P&N Bank (WA), Prospa
Qudos Bank, RedZed, Resimac Prime, St George,
Suncorp, Teachers Mutual Bank, Think Tank, Uni Bank,
Valiant, Victorian Mortgage Group, Virgin Money Australia, Westpac,
WISR, Zip Business.

Our Fees

We may charge a fee for providing Credit Assistance. More detail about those fees will be set out in a Credit Quote we will give to you before we provide you with Credit Assistance.

Other Fees and Charges

You may be charged a lender’s application fee, valuation fees and other fees associated with the loan or lease. These fees are not charged by Purple Circle Financial Services Pty Ltd or our Credit Representative. You should review the disclosure documents and your loan contract or lease for further details of any such fees and charges.

Commissions

Purple Circle Financial Services Pty Ltd has appointed a broker group as our agent to receive commissions from lenders and lessors and to pay Purple Circle Financial Services Pty Ltd commission in relation to loan contracts or leases for which we act as a Credit Representative and provide Credit Assistance. The total amount of commission Purple Circle Financial Services Pty Ltd may receive in relation to your loan or lease may vary depending on the lender or lessor, the term, the features, the amount of the loan or lease you ultimately choose and the amount and timing of the repayments that you make. Some or all of a commission payment received by Purple Circle Financial Services Pty Ltd may be paid to our Credit Representatives.

Loan contracts such as home loans, investment property loans

Upfront commission payable by lenders in relation to loans is calculated as a percentage of the loan amount and is generally in the range of 0.5% and 1% of the loan amount. It is usually paid after settlement of the loan.

Trail commission payable by lenders in relation to loans is generally calculated regularly (monthly, quarterly, bi-monthly or annually) on the outstanding loan balance and is paid in arrears. The trail commission payable by lenders is generally in the range of 0% per annum and 0.30% per annum of the outstanding loan amount.

Personal Loans

Upfront commission payable by lenders in relation to personal loans is calculated as a percentage of the loan amount and is generally in the range of between 1.65% and 2.75% of the loan amount. It is usually paid after settlement of the loan.

No trail commission is payable by lenders in relation to personal loans.

Leases

Upfront commission payable by lessors in relation to leases is calculated as a percentage of the lease amount and is generally in the range of 0.5% and 4% of the lease amount. It is usually paid after settlement of the lease. Trail commission is generally not payable in relation to leases.

Further details of the commission earned by us will be included in the Statement of Credit Assistance disclosure document we will provide to you at the same time as we provide you with Credit Assistance.

You can request information from us about the fees or commission that we are likely to receive, how they are calculated, and our reasonable estimate of the fees or commissions that will be payable.

Volume Bonus Arrangements

From time to time Purple Circle Financial Services Pty Ltd, our Credit Representatives (or our broker group) may receive a benefit, directly by way of cash bonus or additional commissions or indirectly by way of training, professional development days or sponsorship, if we or our broker group write a particular volume of loans offered by those lenders.

Referral Fees

We may pay a referral fee (i.e. commission) for third party referrals. An example of a referrer would be a real estate agent, financial planner, accountant or solicitor. This fee is not payable by you.

Further information about referral fees, including our reasonable estimate of the amount of any fees payable and how it is calculated is available from us on request and will be included in the Statement of Credit Assistance document we will supply to you when we provide you with Credit Assistance.

Purple Circle Financial Services Pty Ltd and our Credit Representatives may also receive a benefit for referring you to other specialist service providers. We will disclose this to you at the time we make the referral.

Ownership

The broker group provides services at arm’s-length to our business which include IT systems, loan information and lodgement systems, training and development, commission processing, conferences and professional development events, and assistance with regulatory and compliance obligations. In consideration of the services the broker group gives us, we pay fees to the broker group or the broker group retains some of the commission panel lenders pay on loans we arrange.

Our business is owned and managed independently from the broker group.

Our Dispute Resolution procedures

We are committed to providing you with the best possible service. If, at any time, we have not met our obligations, or you have a complaint about any of our services, please inform us so we can work towards a resolution. We will endeavour to deal with your complaint promptly, thoroughly and fairly.

If you have a complaint, try to resolve this first with our Credit Representative. If you are unable to resolve your complaint within five (5) business days, you can contact our Complaints Manager using any of the following methods.

In writing: 14A Porter Street, Beaconsfield, WA 6162
Phone: 1300 366 406
email: compliance@purplecfs.com.au

We may ask for additional information and request you to put your complaint in writing to ensure your issue is properly investigated. In cases where your complaint will take longer to resolve, we will update you progressively.

Our Complaints Manager will acknowledge receipt of your complaint within five (5) business days. If unable to resolve the complaint/dispute to your satisfaction within five (5) business days, they will write to you advising the procedures we will follow in investigating and handling your complaint.

Within 45 calendar days from the date you lodged the complaint with us, we will write to you advising you the outcome of the investigation and the reason/s for our decision, or if required, we will inform you if more time is needed to complete the investigation.

Third Party Products or Services

If your complaint relates to a product or service acquired through a third party (for example, a lender) we may ask you to contact the relevant third party. It will deal with your complaint under its complaint’s resolution process.

If you are not satisfied with the resolution of your complaint by the third party under its complaint’s resolution process, you are entitled to have your dispute considered by its External Dispute Resolution Scheme. Please contact the third party for further details.

External Dispute Resolution Scheme

If you do not think we have resolved your complaint to your satisfaction, you may take the matter – free of charge – to our External Disputes Resolution Scheme (provided it is within the scheme’s terms of reference) as detailed below, but if our internal process is still in progress, it may request that our internal processes be complete before considering the matter further.

Our external dispute resolution service provider is the Australian Financial Complaints Authority which can be contacted via:

Telephone: 1800 931 678 (free call)
Website: http://www.afca.org.au
Mail Address: GPO Box 3, Melbourne, VIC 3001
Fax: 03 9613 6399