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

Auditor Deregistered After Brite Advisers Collapse 30 Jun 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has deregistered auditor David Makowa, previously of DM Advisory Services, due to his role in the downfall of financial advice firm Brite Advisers. This decision follows Makowa's acceptance of a court-enforceable undertaking in which he agreed to surrender his auditor registration permanently, pledging never to re-apply. - read more

US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns 23 Jun 2025: Paige Estritori The escalating likelihood of the United States engaging militarily in the Israel-Iran conflict has raised alarm among investors, potentially leading to significant market volatility. This concern was highlighted by the global financial advisory firm, deVere Group, as tensions heighten in the Middle East. - read more

Global Markets Brace for Oil Price Surge Following US Strike on Iran 23 Jun 2025: Paige Estritori The recent US military attack on Iranian nuclear facilities has raised expectations of a significant oil price spike as global markets prepare to resume trading. Announced by former President Donald Trump, the attack marks an increased US involvement in the Middle East, which analysts believe could lead to heightened volatility across financial markets. - read more

Trump Mulls Change of Heart on Firing Fed Chair Powell 21 Jun 2025: Paige Estritori US President Donald Trump is once again contemplating the dismissal of Federal Reserve Chair Jerome Powell, whom he has criticized for not lowering interest rates. Trump expressed his dissatisfaction with Powell's decisions in a Truth Social post, suggesting he might change his mind about firing him. Despite acknowledging that his strong criticisms make Powell's task challenging, Trump remains focused on his agenda for reduced rates, especially with Powell's term set to end in May 2026. - read more

APRA Clarifies HELP Debt Considerations in Home Loan Assessments 20 Jun 2025: Paige Estritori The Australian Prudential Regulation Authority (APRA) has released pivotal updates to the Prudential Practice Guide APG 223 and Reporting Standard ARS 223.0, focusing on how Authorised Deposit-taking Institutions (ADIs) should integrate Higher Education Loan Program (HELP) debt into home loan evaluations. The changes are aimed at enhancing regulatory clarity and acknowledging the individual circumstances of borrowers, including the nuances of their HELP debts, without compromising prudent lending practices. - read more