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Credit law toolkit

Section 24 of the Customer Owned Banking Code of Practice

If you are in financial difficulties

24.1 We will work with you in a constructive way if you experience genuine difficulties meeting your financial commitments to us. With your agreement and commitment, we will try to assist you to overcome those difficulties. We will do this whether or not you have a right to seek a hardship variation or change under consumer credit laws.

24.2 Without limiting (24.1), we will have procedures in place to ensure we:

  1. adhere to hardship variation or change provisions of consumer credit laws
  2. respond promptly to any request or application made to us (we may also initiate contact to discuss your financial situation)
  3. genuinely consider your application or request, taking account of your situation. However, we will only be able to do this if you provide us with the financial information and documents we may reasonably need to assess your situation for ourselves
  4. encourage you to keep making whatever payments you can while we are considering your request • consider longer term as well as short-term financial issues when they are relevant. If you are experiencing longer term difficulties, we will try to develop an appropriate solution with you to allow you to meet your obligations
  5. not list your default on your credit reference file while we are considering your application or request, unless legally required to do so
  6. when you have made an application or request in respect of a debt, not sell that debt to a debt buy-out business while we are still considering the application or request
  7. suggest other options or avenues that may be available to you, if we are unable to agree to your application or request
  8. if we are unable to assist you, advise you promptly in writing, and
  9. refer you to a financial counselling or similar service in appropriate cases (subject to availability).