As Australians brace for the ripple effects of global volatility including fuel prices and rising cost-of-living pressures, customer-owned banks are ready to assist. The sector is urging customers who are experiencing financial hardship and finding it difficult to meet their repayments to reach out to their mutual bank or credit union for support as early as possible.
“While this is an incredibly uncertain and volatile time, customer-owned banks are ready to support their customers and communities. If you are facing difficulties, please reach out to your mutual bank or credit union as soon as possible,” Customer Owned Banking Association (COBA) CEO Michael Lawrence said.
“The earlier you reach out, the more options may be available, such as temporary payment deferrals or adjusted loan repayment schedules tailored to your situation. Taking action early can prevent a small financial hurdle from becoming a major problem.”
A financial hardship arrangement can help customers find their feet during difficult times. While arrangement options depend on individual circumstances, they can help make financial obligations more manageable.
Despite this support, many people hesitate to ask for financial hardship assistance due to concerns it may affect their credit report or future borrowing. However, it is important to note that entering into a financial hardship arrangement will not lower a person’s credit score.
For Australians who are struggling and need temporary financial hardship assistance, the first step is to contact their customer-owned bank’s dedicated hardship team.
“Your customer-owned bank is here to help; they will talk through your options and find a solution that is right for you,” Mr. Lawrence said.
Further information on how customer-owned banks can assist in situations of financial hardship is available here. A comprehensive list of Australia’s customer-owned banks can be found here.
ENDS
For further information or to arrange interviews, please contact Mira Palomaki on 0459 954 035 media@coba.asn.au
The Customer Owned Banking Association is the industry body for mutual banks, credit unions and building societies. For almost 180 years our sector has put customers first, returning profits to more than 5 million Australians who put their trust in customer-owned banks.