Dona Ferentes
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This has blown up big time. ME Bank are not doing themselves any favours. Article in the SMH is by Adele Ferguson
'Despicable ME': The boutique bank raiding accounts linked to home loans
https://www.smh.com.au/business/ban...inked-to-home-loans-20200501-p54oxn.html?btis
In a statement, it said the bank had identified that the redraw facility of some legacy home loans could lead to some customers falling behind their original repayment schedules. "ME is in the process of contacting affected customers," it said. "Some customers could be at risk of not meeting their repayment commitments, potentially leaving them open to financial hardship at the end of the loan term," the bank said.
It said it was reviewing the personal circumstances of each customer affected and was committed to working with them. "For customers whose limits have been reduced, the bank will look to rearrange financing at the bank’s cost. All customers have access to the three- and six-month repayment holidays."The bank denied the move had anything to do with the liquidity positions of its super fund shareholders, which are facing mass withdrawals from customers under a government scheme allowing Australians suffering from hardship to access their retirement savings ahead of schedule.
"ME did not ask for a top-up from shareholders to meet capital requirements and we have no need for capital from our shareholders," it said. "Our current and forecast capital and liquidity levels are well above both internal targets and regulatory requirements. Our Liquidity Coverage Ratio is currently more than double the regulatory requirements."
'Despicable ME': The boutique bank raiding accounts linked to home loans
https://www.smh.com.au/business/ban...inked-to-home-loans-20200501-p54oxn.html?btis
....ME Bank failed to respond to 'a series of detailed questions including how many customers were affected, the amount of money transferred to mortgages, why it failed to notify customers and why it failed to have the infrastructure in place related to the impact of falling property prices on the value of its loan book or due to capital requirements.'
In a statement, it said the bank had identified that the redraw facility of some legacy home loans could lead to some customers falling behind their original repayment schedules. "ME is in the process of contacting affected customers," it said. "Some customers could be at risk of not meeting their repayment commitments, potentially leaving them open to financial hardship at the end of the loan term," the bank said.
It said it was reviewing the personal circumstances of each customer affected and was committed to working with them. "For customers whose limits have been reduced, the bank will look to rearrange financing at the bank’s cost. All customers have access to the three- and six-month repayment holidays."The bank denied the move had anything to do with the liquidity positions of its super fund shareholders, which are facing mass withdrawals from customers under a government scheme allowing Australians suffering from hardship to access their retirement savings ahead of schedule.
"ME did not ask for a top-up from shareholders to meet capital requirements and we have no need for capital from our shareholders," it said. "Our current and forecast capital and liquidity levels are well above both internal targets and regulatory requirements. Our Liquidity Coverage Ratio is currently more than double the regulatory requirements."