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.

Westpac expands debt cancellation policy

westpac building westpac building
Reporter 5 minute read

The major bank has extended its internal debt cancellation process for home loan applicants to business facilities and personal overdrafts.

Westpac Group has announced that as of 10 March 2020, its internal debt cancellation (IDC) process for home loan applications will be extended to Westpac and St. George business facilities and personal overdrafts.  

At present, the IDC process only applies to Westpac credit cards, personal loans, flexi loans and equipment finance.

The group has also announced that a new limit reduction process will be introduced, which will authorise Westpac to repay and reduce limits for credit cards, flexi loans, business facilities, and personal overdrafts.

Advertisement
Advertisement

The new limit reduction process will also apply to St. George credit cards, “Get Set” loans, business facilities, and overdrafts.

The group stated that where the reduced credit card limit required is below the product minimum, brokers should discuss options with the customer, which may include reducing the loan amount to the minimum product limit, requesting the liability be cleared with the new loan funds and closed, or advising the customer to request a product switch.

This is the latest of several changes to Westpac’s consumer credit policy in recent months.

Last month, Westpac updated its consumer credit policy to use comprehensive credit reporting (CCR) information in the assessment of new home loan applications and loan increases.

The changes include:

PROMOTED CONTENT


  • The use of CCR information to help verify an applicant’s liabilities and identify mismatches. Brokers can help by accessing their client’s credit report with their consent and raise any liability mismatches with the client immediately.
  • Requiring brokers to discuss any recent enquiries from the last two months to see if the application proceeded;
  • No longer requiring statements to verify certain liabilities where CCR information is listed on the credit report; and
  • Using repayment history information as part of the lending decision.

The group said the changes are required to ensure it continues to apply responsible lending practices in assessing a customer’s ability to service existing and proposed debts.

Westpac’s updated policy was effective from 16 February.

[Related: Westpac integrates CCR, update loan process]

Westpac expands debt cancellation policy
westpac building
TheAdviser logo

If you have ever considered how you could better service your SME clients but lack the knowledge or confidence to do this beyond referring them on, this is a must-attend event for you. Don't miss SME Broker Bootcamp, a jam-packed, free-to-attend, practical workshop. Register today and secure your place at this interactive, flexible, must-attend event.

westpac building

 

more from the adviser
RBA

Breaking News

RBA makes December cash rate call

The Reserve Bank has declared its last cash rate decision for 202...

digital technology user

Breaking News

Aggregator launches ‘fully digital home loan’

Connective Home Loans has launched a new digital home loan to its...

parliament

Breaking News

Bill to expand First Home Super Saver Scheme delayed

With the final sitting day of Parliament over, the bill expand...