Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Suncorp warns of ‘administrative error’

suncorp new logo ta

suncorp new logo ta
Annie Kane 3 minute read

Following an “administrative error” in which Suncorp failed to remind mortgagors of their home insurance obligations, brokers are being advised that their customers may be affected.

In an update to brokers, Suncorp revealed that it has begun notifying customers of an “administrative error” which resulted in the bank breaching its obligations under the Banking Code of Practice.

As part of the Banking Code of Practice 2013, lenders are obliged to annually remind customers who have a credit facility secured over their primary place of residence (or their residential investment property) to obtain relevant insurance, as per the terms and conditions of their mortgage.

The new Banking Code of Practice, which is set to come into force on 1 July, also incorporates a requirement for lenders to annually remind mortgagors of their obligations to insure the property (either primary place of residence or a residential investment property) which is securing their mortgage.

While Suncorp had historically been including this reminder on customers’ bank statements, it had revealed that “for a period of time”, this message had not been included on some bank statements.

Suncorp has said that the bank statements have since been amended and updated to include the home insurance reminder and has reportedly advised the Code Compliance Monitoring Committee of its breach.

The non-major bank has said that it will be writing to all impacted customers “with active loans with Suncorp” of the error “throughout June 2019”. It said it would also be including the home insurance reminder message that they will now see on their future Suncorp bank statements.

In a note to brokers, the bank said: “While the error does not impact brokers directly, it does affect those brokers’ customers whose bank statements failed to include the reminder notice.”

Advertisement
Advertisement

PROMOTED FEATURES


Brokers with further questions on the matter are being asked to contact a member of the Suncorp Bank Intermediaries Operations team This email address is being protected from spambots. You need JavaScript enabled to view it..

[Related: Suncorp pledges to support brokers through headwinds]

Suncorp warns of ‘administrative error’
suncorp new logo ta
TheAdviser logo
suncorp new logo ta
Annie Kane

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Email Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

more from the adviser
handshake men AFG partners with MAB in joint venture

Major aggregator Australian Finance Group is set to become the jo...

scales justice ta ASIC takes short-term lenders to court

The corporate watchdog has commenced proceedings in the Federal C...

Tax sign Victoria SME grants now income tax free

Grants provided to small businesses under the Victorian governm...

FROM THE WEB