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.

Bank backs down on redraw policy

me bank  me bank
Charbel Kadib 4 minute read

A non-major has scrapped its controversial redraw policy following widespread, cross-industry criticism.

Last week, it was reported that super fund-owned lender ME Bank had reduced the amount borrowers could redraw from specific legacy mortgage products without forewarning customers. 

While permitted under ME’s terms and conditions, the policy decision was met with backlash from customers, brokers and the broader community. 

In response, ME announced that it would review its decision in consultation with affected customers.

Advertisement
Advertisement

ME has now revealed that it has decided to “change back” home loan redraw limits for any customers who wish to opt out.

The bank has acknowledged that the policy was “poorly communicated” and has “upset customers”.

“Some of our customers have told us they want their redraw limits changed back to what they were before. We are going to do that,” Jamie McPhee, CEO of ME Bank, said. 

“We have set up a dedicated hotline for any customer who would like their redraw limits changed back or, if they prefer, they can request it online. 

“We are deeply sorry; we were trying to do the right thing, but we went about it the wrong way.”

PROMOTED CONTENT


Mr McPhee sought to reassure customers that the bank had not removed funds from customer accounts or transferred any customer funds and did not make the adjustment for “liquidity reasons”.

“Our priority now is to help, support and service our customers,” he added.

“We recognise that we need to do better – we can and we will.”

[Related: ME Bank reviewing affected redraw customers]

Bank backs down on redraw policy
me bank
TheAdviser logo
me bank
Charbel Kadib

Charbel Kadib

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

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

 

more from the adviser
jonathon reeves Time Home Loans changes hands

The brokerage has been acquired by broker and Cliff & Moss fo...

gentlmen handshake Finsure partnership to boost digital asset finance offering

The aggregation group has formed a new partnership with software ...

Aussie home loans office Aussie welcomes franchise store growth

Major brokerage Aussie has said that it will increase the number...

FROM THE WEB