Big four banks’ decision to prioritise hardship cases is not a new concept says CUA
Australia's largest credit union CUA (Credit Union Australia) has backed its industry body ABACUS’ stance that the big four banks’ decision to assist borrowers facing financial hardship is already a practise carried out in all mutual institutions.
CUA Acting CEO Rob Nicholls said that while he applauded the big banks’ decision the announcement publicised something that CUA and other mutuals had always done – work with members to help them through the tough times and provide members with a solution that best suited them.
“At CUA we lend responsibly so members are not over-stretched, and secondly, if tough times arrive we work with members to help get them back on their feet wherever we can,” he said. “That’s what being member-owned is about – putting our members’ interests first.
“The big banks have agreed to look seriously at hardship applications on a case by case basis, and to work with their customers more sympathetically, which are commitments we already make at CUA.”
Mr Nicholls said CUA understood the struggles people faced in the current economic climate and saw now, more than ever, the need to deal responsibly and fairly with their customers.
“There are many things that happen in life that simply cannot be predicted, such as a redundancy, and we assess each situation on a case by case basis and work with our members to do everything possible to assist them.
“The important thing for borrowers to remember is that if you get into trouble you need to approach your financial institution and try to work out a solution with them before the problem gets worse.”
Ms Sharyn Edwards, who has been a CUA member for over 20 years, said when she hit a major crisis in her life and was unable to make her fortnightly home loan repayments CUA developed a strategy that ensured she did not lose her home.
“I had an accident and was in hospital for approximately three months,” she said.
“I then had to recuperate at home and couldn’t work for about 14 months, but because I contacted CUA straight away they were able to assess my individual circumstances and in my case decided they could allow me to miss my mortgage repayments while I recovered.
“At the time of the accident I was up-to-date with all my repayments and I owed $120,000 on my home. I couldn’t imagine that CUA would repossess it, although they certainly would have been within their rights to do so.
“I would have been devastated if I had lost my home and I’m grateful CUA were compassionate enough to hold off on my repayments until I was well enough to work again. Now I’ve been given a catch-up period to make up my missed repayments.”
Mr Nicholls said CUA had always had a fairly conservative lending policy to ensure it didn’t lend to people who would not be able to make repayments.
“At CUA we would rather be honest and turn business away than lend money to people who would struggle to make repayments.
“It has always been one of our core values to put people first and we take responsible lending very seriously.”
Any CUA member who is facing difficult financial circumstances or an inability to repay their loan should contact CUA Direct on 133 cua (133 282) to discuss their situation further.
