banks launch website to help stress homeowners

Banks launch website to help stressed homeowners

by: Nick Tabakoff
From:Herald Sun
December 05, 201112:00AM

Economic uncertainty overseas is a key reason behind the new website. Supplied


BANKS have launched a website giving financially stressed homeowners information about hardship packages so they can avoid avoid defaulting on their mortgages.

The Australian Bankers Association's CEO Steven Munchenberg admitted global economic uncertainty was behind the move.

"We don't know what's going to happen in Europe and in Australia, but it's better we start to think about making sure we're prepared," he said.

He said it was the first time the banks had set up a site to deal with customer hardship on mortgages and other financial products such as credit cards and personal loans.

The European financial crisis, the two-speed Australian economy and rising unemployment levels are already starting to affect the viability of bank loans.

Mr Munchenberg said banks were aware sectors of the economy had been struggling in a local economy dominated by mining.
"Unemployment has been unevenly spread," he said.

The Government last week forecast unemployment would increase to 5.5 per cent by mid-2012.

Recent Reserve Bank reports have pointed to a higher ratio of "non-performing loans" and people falling behind on mortgage repayments in recent months.

The banks' site - www.doingittough.info - directs those who are financially stressed to click on icons of their individual banks to go straight through to "hardship websites" for each institution.

It also contains financial health checklists testing whether customers are at risk of loan default.

Mr Munchenberg claimed these measures would help ensure customers were not in over their heads.

Banks did not want to foreclose on homes, he said.

"In bankers' terms, you don't want to be in a situation that instead of the loan being paid, you end up in possession of a house."

Christopher Zinn, communications and campaigns director for Choice, said the banks were motivated by fear of economic turbulence spreading to Australia in 2012.

"They're doing it now because they fear the cold winds are going to blow in from overseas," he said.

"They want to have something locked and loaded to show consumers in case things get nasty."

The Herald Sun's call was the first Mr Zinn had heard of the site.

"It's prudent to have something like this in the closet so that they are seen to be doing some of the right things when times get tougher," he said.


http://www.heraldsun.com.au/news/banks-launch-website-to-help-stressed-homeowners/story-e6frf7jo-1226213589468