Banks pressuring customers to make unrealistic loan repayments as deferrals end
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WedWednesday 20
updated
WedWednesday 20
JanJanuary 2021 at 6:19am
A Westpac spokesperson said about 75 per cent of customers who had deferred loan payments had begun to repay.
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Borrowers are being pressured by banks to make significant, bulk payments as loan deferrals begin wrapping up.
Key points:
The Australian Prudential Regulation Authority says repayment deferrals must end on March 31
The National Debt Helpline said one person was told he had to pay $20,000 in arrears before regular payments could restart
Financial counsellors are concerned the pressure from banks will send some people to payday lenders
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at 10:20 am on January 20, 2021 | 14 comments
Consumer groups have hardened in their opposition to the Morrison Government’s plans to abolish responsible lending laws, which were introduced in 2009. The Financial Rights Legal Centre has urged Senate crossbenchers to vote against any such move, while Financial Counselling Australia and CHOICE warn that scrapping the responsible lending regime would make it easier for lenders to take advantage of borrowers:
“We’re seeing record loans,” said Julia Davis, policy and communications officer at the Financial Rights Legal Centre.
“We’ve sold more loans in Australia than ever before in history … that doesn’t tell me that we need to ease responsible lending standards,” Ms Davis said.
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Survivors of the Black Summer bushfires could be left homeless by insurance companies ceasing to pay for temporary accommodation when rebuilds are yet to be completed.
Many bushfire survivors were uninsured or under-insured, but even those with full insurance found their coverage for temporary accommodation was typically capped, either by lump sum or time, and often runs out in 12 months.
The Glover family s house in Mogo after the Black Summer bushfires.
Credit:James Brickwood
Fire anniversaries on the North Coast and South Coast of NSW run from September 2020 to February this year.
Andrew Constance, the state member for Bega, called on insurance companies to show leniency and grace because alternative accommodation was scarce, pointing out 1200 homes were destroyed between Lake Conjola and the Victorian border.