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Credit law toolkit

Section 28 Code of Banking Practice

If you are experiencing financial difficulties with your credit facility

28.1 This clause 28 applies to a credit facility you have with us.

28.2 With your agreement and co- operation, we will try to help you overcome your financial difficulties with any credit facility you have with us. We could, for example, work with you to develop a repayment plan.

28.3 We will deal with you or, at your request, with your authorised financial counsellor or representative where you have given us their correct contact details. If our reasonable attempts to contact or otherwise deal with your financial counsellor or other representative are unsuccessful, we will revert to dealing with you.

28.4 If, in the course of our personal dealings with you, we identify that you may be experiencing difficulties in meeting your repayments under the credit facility, we may decide to contact you and invite you to discuss your situation with us and the options available to assist you in meeting your obligations in these circumstances.

28.5 If, at any time you consider you are, or expect to be, experiencing difficulties in meeting your repayments to us, you should make contact with us as soon as possible to discuss your situation with us and the options available to assist you in meeting your obligations.

28.6 We will respond promptly (for example, within the timeframes prescribed by the National Credit Code, if it applies) to any requests for assistance from you, or your authorised representative, in relation to your financial difficulties with a credit facility you have with us. We will take into account the information available to us, including the information you provide to us, about your financial situation in determining whether or not we are able to provide assistance and the nature and extent of any assistance.

28.7 If, when you contact us in any of the circumstances described in clauses 28.5 and 28.6 or when you discuss your situation with us as a result of an invitation described in clause 28.4, we think that the hardship provisions of the National Credit Code could apply to your circumstances, we will inform you about them.

28.8 We will inform you in writing of our decision whether or not to provide you with any assistance if you are in financial difficulty with a credit facility you have with us and the reasons for our decision. If we agree to provide you with assistance, we will confirm in writing the main details of the arrangements.

28.9 We will:

  1. not require you to apply for early release of your superannuation benefits to repay the whole or any part of your credit facility with us; and
  2. recommend that you seek independent advice on the option of applying for early release of your superannuation benefits, for example, from a financial counsellor or financial adviser.

Information on having your superannuation benefits released early is available from the Department of Human Services (www.humanservices.gov.au).

28.10 We will make information about our processes for dealing with customers in financial difficulty with a credit facility available on our website (including relevant contact numbers). We will inform you at your request about how to find this information on our website and we will make this information available in another format if you tell us you do not have access to our website.

28.11 We will take reasonable steps to ensure that relevant staff, who are responsible for dealing with you about your financial difficulties with a credit facility you have with us, are trained in relation to the hardship provisions of this Code and the National Credit Code.