As the number of customers falling behind on their repayments rises, the watchdog says too many people in hardship are finding it hard to get help.
The corporate watchdog says banks and other mortgage lenders have made it too hard for struggling borrowers to get help from their financial institution, after a review found accessing hardship assistance was too often confusing and frustrating for customers who were already stressed.
ASIC reviewed the hardship arrangements of 10 bank and non-bank lenders and found the industry was generally making it too hard for borrowers to obtain help. More than 35 per cent of customers were dropping out of the application process at least once. ASIC also said that sometimes lenders did not take extra care with vulnerable customers. It cited an example of a borrower who was experiencing family violence and sought to defer her home loan payments, so she could move into an apartment. ASIC said it was five weeks before the lender approved a three-month deferral of loan repayments. It did not name the lender.
The regulator said the practices of the lenders it reviewed “varied significantly” but in general, banks performed better than non-banks – and larger banks better than smaller banks. “Every single week banks help thousands of Australians in financial trouble with a range of practical tools including restructuring loans to lower repayments, moving people to interest-only arrangements or potentially deferring payments for a period,” Bligh said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASIC puts superannuation funds on notice over advice feesSuper funds are obliged to ensure members are only charged for financial advice they actually receive but not all are doing so.
Read more »
PwC tax leaks scandal: Let ASIC police big four conflicts: SamuelFormer ACCC chairman Graeme Samuel says the big four’s governance changes looked good on paper, but would not fundamentally change the culture of the firms.
Read more »
ASIC fears about Morgans stockbroking revealed after five-year FOI battleThe corporate cop dealt with problems brewing at leading stockbroker Morgans for three years before a public crackdown. New documents detail the scale of its concern.
Read more »
Urban Rampage considers appealing against ASIC's permanent ban on the retailer using CentrepayRetailer Urban Rampage, whose customers are predominantly First Nations people, is considering a legal challenge against its ban from using Centrepay, a credit service that lets consumers buy goods and pay them off via deductions from their Centrelink payments.
Read more »
John Hempton tip-off: ASIC secretly probed IAG’s Greensill disclosureAs IAG raised $750m, a hedge fund’s tip-off claimed there was scant detail about exposure to fast financier Greensill Group. Since then, $7b in gross claims have been declared.
Read more »
Magnis Energy, Frank Poullas sued by ASIC for misleading disclosureThe regulator is suing Magnis Energy and chairman Frank Poullas in Federal Court for misleading investors over the “parlous state” of its battery factory.
Read more »