My understanding most of the cases gone before the courts have been the unemployed and elderly.
For example, John O'Donnell was unemployed for 18 months when an investment spruiker suggested he unlock the equity in his home. He and his wife made 23,000 a year.
When the cases surface, Consumer advocate Denise Brailey gets them to ask for a copy of their loan application.
The Australian writes : "Every time the borrowers receive the forms they are blown away," Brailey says. "Incomes have been grossly exaggerated, false employment job descriptions have been entered or they have been stated as being employed when they're not."
So clearly the brokers are falsifying documents.
There has been some emails published suggesting the industry encoraged these practices.
Certainly if any investors were caught up with loans they can't afford, I wouldn't care I bit. I think as they are investment loans, they are not covered under the consumer protection laws anyway. I would hope any such claims in the courts would be thrown out.
