The non-major has revised its guarantor policy in response to provisions in the new banking code of practice.
BOQ has announced that as part of its commitment to complying with the new Banking Code of Practice (BCP), it has made additional changes to its guarantor policy, effective Sunday, 1 March.
The non-major will now require interviews with loan guarantors to be conducted face-to-face and separately from the borrower.
Guarantors will also be required to independently review and sign the guarantee documents, with brokers asked to ensure the guarantor signs the guarantee and indemnity in the absence of the borrower.
The Australian Securities and Investments Commission (ASIC) provided its final approval on the updated version of the Australian Banking Association’s (ABA) banking code in December.
The new changes are due to come into effect as of 1 March 2020.
The amended code of practice is intended to strengthen protections for vulnerable and low-income customers, including agricultural borrowers affected by drought and natural disasters.
Further, the changes are designed to ensure appropriate protections for consumer and small-business customers and their guarantors.
Under the new code of practice, banks will also be required to:
[Related: ASIC approves banking code changes]
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