Credit Woes and Unexpected Calls: An Aussie Tale

2

Speaking on the condition of anonymity, Brian* shared his story, highlighting particular incidents caused by Bankwest that left a significant mark on their financial health. In desperate times,Brian arranged to pay an additional $1100 monthly to catch up on his mortgage, but the bank still reported missed payments, tumbling his credit score severely.

The resulting bad credit has stalledBrian's opportunities to refinance to more favorable terms. "This case demonstrates a larger tendency among banks,"Brian stated, "to complicate customer transitions to more affordable rates, which I see as a form of predatory banking."

Compared to his experience with HSBC,Brian noted that while he has similar hardship accommodations for another property with them, they have never marked a payment as missed. This inconsistency amplified his distress regarding Bankwest's practices.

Back in March, an unexpected call from Bankwest to his wife regarding an $8000 outstanding debt left the family in anxiety, as his wife feared losing their home. The emotional impact was profound, as she was not the one familiar with their financial dealings.

Efforts to resolve the issue were met with an unfortunate incident where they received a letter from Bankwest declining a request for financial aid—a request whichBrian insists they never submitted. "It just added to the whirlwind of confusion," he said.

Brian's experience is further compounded by the launch of a complaint with the Australian Financial Complaints Authority (AFCA). Although the complaint acknowledged Brian had enough notice on the impact of his credit report, the abrupt nature of the call was deemed inappropriate. Bankwest was advised to consider compensating $1000 for the distress caused by the call.

A Bankwest representative, in response to requests for comments, emphasized their adherence to financial regulations and the emphasis placed on explaining the implications of hardship arrangements. "Our goal is always to communicate clearly with customers," they stated, outlining safeguards for customers considering various financial options.

This shell of events shuttered Melbourne’s landscape further with Bankwest closing its only branch in the city, leaving personal consultations out of reach, and forcing reliance on remote communication lines.

Reviewing other analysis such as the report by Jeremy Piper in NCA NewsWire, and based on insights in Sarah Sharples' expose in News.com.au, customers like Brian are testing the industry’s harmony with customer welfare policies during economic volatility.

Brian's case serves as a reminder of the ripple effects of financial behaviors and policies on everyday lives, underscoring the persistent struggle for transparency and fair treatment in banking.

Published:Saturday, 26th Oct 2024
Source: Paige Estritori

Share this news item:

Finance News

Clear

Overseas Investors Target Australian Real Estate Debt 13 Jun 2025: Paige Estritori The Australian commercial real estate debt market is garnering attention from international investors, with the Canada Pension Plan Investment Board (CPP Investments) making significant inroads. In partnership with Nuveen, a global asset manager, a substantial investment strategy targeting Australian real estate debt has closed its second round. The total commitment exceeded $650 million, with CPP Investments contributing $300 million through their CPPIB Credit Investments Inc. - read more

ASIC Cracks Down on Risky Financial Influences 12 Jun 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has issued warnings to 18 social media influencers actively promoting high-risk financial products without the necessary licence. The move is part of a broader initiative to curb unlicensed financial advice in the online sphere, where influencers often lure young audiences with glamorous lifestyles while dispensing questionable investment tips. ASIC has identified these so-called 'finfluencers' as operating in breech of the Corporations Act by promoting complex financial products like derivatives without proper authorisation. - read more

ASIC Introduces 2-Year Fast-Track IPO Trial to Boost Market Appeal 11 Jun 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has responded to stakeholder feedback by initiating a two-year trial of a fast-track process for Initial Public Offerings (IPOs). This initiative aims to address the decline in Australian IPOs and the number of public companies by making the IPO process more efficient. - read more

Intergenerational Wealth Transfer: A Prime Opportunity for Australian Advisers 11 Jun 2025: Paige Estritori Recent findings from EY's Global Wealth Research report highlight a significant opportunity for financial advisers in Australia as a large-scale intergenerational wealth transfer looms. With only 35% of Australians planning to retain their inherited assets in their existing forms, there is a noticeable shift towards diversification, with 51% intending to spread their investments across various asset classes. This trend opens the door for advisers to engage deeply with new inheritors, ensuring client retention across generations. - read more

RBA Poised for July Rate Cut Amid Economic Slowdown 11 Jun 2025: Paige Estritori The Reserve Bank of Australia (RBA) is widely expected to cut the official cash rate (OCR) at its upcoming July meeting. According to Westpac, the probability of this decision has reached an overwhelming 97% in financial markets. - read more