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 5 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.

Advertisement
Advertisement

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.”

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..

PROMOTED CONTENT


[Related: Suncorp pledges to support brokers through headwinds]

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

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

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
stuart Stoyan new headshot

Breaking News

Non-bank founder-CEO resigns

The chief executive of a non-bank personal lender has resigned ...

covid vaccine ta

Breaking News

Unvaccinated Victorian brokers may risk fines if they work outside of home

Starting today (15 October), unvaccinated brokers across Victori...

Paul Wright ta

Breaking News

MoneyQuest’s $1bn broker sells franchise

The owner of MoneyQuest Wollongong has sold his franchise and wil...