Banks support for customers impacted by Coronavirus. Australia’s lenders have developed clearly defined financial relief strategies to support customers financially affected by the Coronavis pandemic.
With the rapid spread of COVID-19, many Australians will face financial hardship due to a loss of income over the coming months. Quarantine restrictions, heightened community safety measures, business slowdowns and closures will all have a negative financial impact on the community.
If you are experiencing or expect a future income loss as a result of the coronavirus pandemic and are concerned about meeting your financial commitments, please contact your lender immediately to discuss the measures they have in place to support you. Getting assistance as early as possible could take the pressure off and help you manage your finances. Don’t wait until your debt repayment is due to enquire, speak to your credit providers about what support is available and what the process will be to access that support if you need it in the weeks and months ahead. It is vital that you do not stop or delay your debt repayments without contacting your lender first as this may incur large default fees and can affect your ability to get a credit facility in the future.
Depending on the lender, financial hardship support may include:
- deferring or reducing loan repayments
- restructuring and consolidating loans
- altering loan repayments to interest-only
- changing limits on lines of credit (e.g. credit card)
- waiving certain fees and charges
- waiving penalties for early withdrawal of a term deposit
- freezing loans in exceptional circumstances, such as after an emergency event or natural disaster
- providing a moratorium on collections action
- providing alternative banking arrangements.
- small business loans or lines of credit for self-employed people.
Australia’s credit providers have clear obligations under The National Credit Code to assist customers experiencing financial hardship. In an official Australian Banking Association statement, CEO Anna Bligh said “Banks stand ready to support customers and if anyone is in need of assistance, they shouldn’t wait but come forward as soon as possible.” For more information from the Australian Banking Association on financial hardship go to https://www.ausbanking.org.au/campaigns/financial-hardship/
If you’re not satisfied with the support your bank has provided, you’ve got the right to lodge a complaint with your bank and with the Australian Financial Complaints Authority (AFCA), www.afca.org.au or phone toll-free on 1800 931 678.
Assured Lending Mortgage Brokers are conducting business as usual. If you would like assistance from us for a loan review or debt consolidation, we are able to organise everything remotely via video or phone hook ups to keep both you and our staff safe during these uncertain times. The services provided by Assured Lending Mortgage Brokers are both cost and obligation free.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.