Powered by MOMENTUM MEDIA
the adviser logo
Lender

Suncorp warns of ‘administrative error’

by Annie Kane4 minute read
Suncorp

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..

[Related: Suncorp pledges to support brokers through headwinds]

suncorp new logo ta

Annie Kane

Annie Kane

AUTHOR

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

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Stephen Hale ta

MFAA launches near-prime, specialist loan resource

Coined Finance for when your customer doesn’t fit the mould: A broker’s guide to near-prime and...

READ MORE
Daniel Newell Gedda

Specialist lender LoanU rebrands to Gedda

The personal and auto loan provider LoanU, which specialises in helping Australians with impaired credit histories...

READ MORE
tech tools

CBA introduces AI technology to combat scams

New figures released by the competition watchdog this week have revealed that Australians lost more than $2 billion...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more