Westpac has announced it will pause credit card repayments for three months for customers who have lost their jobs or suffered a loss of income as a result of COVID-19.
The new support package,detailed in full on the bank's website, will mean that for three statement cycles eligible credit card holders will not be charged or accrue interest on new card purchases. Card holders will also not be charged or accrue any interest on an existing amount owing on their cards.
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Customers will be able to continue using their credit card provided their account is not in arrears and has not reached their credit limit.
Westpac said in a note that once the three month period ends, card holders will need to make at least the minimum monthly repayment on their account.
"At the end of the 3-month period your repayments will return to normal, and interest will be charged as before. You will begin to accrue interest on any outstanding balance from the end of the 3-month interest pause period," Westpac tells customers.
"If you still require assistance after the 3-month support period has finished, please get in touch with us."
Not all credit card customers can apply for the three-month support package.
A glitch meant Westpac customers may have been paying only the interest on their home loans for longer than expected.(AAP)
To be eligible, you must have held your credit card account on January 1 this year and you must not have previously applied for hardship assistance on the account.
You also need to have have been up-to-date with your minimum repayments at some point during the last 90 days.
No fees will be charged to access the three-month support package, but other fees such as annual card fees or cash advance fees still apply.
HOTLINE FOR JOBKEEPER ADVICE
This morning Westpac announced it was introducing a customer helpline for businesses impacted by COVID-19 who are waiting for Federal Government JobKeeper payments to come through.
The new hotline will help affected business customers bridge the gap between paying employees now and receiving government support in May.
Chief Executive of Westpac's Business Division Guil Lima said the bank knows it has a role to play during this time.
"Westpac is committed to helping our business customers as they navigate this period by offering practical, meaningful support where we can," said Mr Lima.
"We all have a role to play in this extraordinary and challenging time."
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