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Lenders are providing emergency assistance to customers and businesses as fears grow of widespread destruction caused by Tropical Cyclone Alfred.
As Tropical Cyclone Alfred nears the Queensland coast, banks are rolling out measures for customers including mortgage repayment relief, waived fees, and credit limit increases.
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The Commonwealth Bank of Australia (CBA), the Australia and New Zealand Banking Group (ANZ), Westpac, National Australia Bank (NAB) and Bankwest have all announced emergency assistance programs, with other lenders and aggregators likely to follow suit.
On the early afternoon of Thursday (6 March), the Bureau of Meteorology reported that the cyclone had slowed and was expected to cross the coast very early Saturday morning, most likely between Noosa and Coolangatta.
The storm could batter the coast with wind gusts of up to 155 kilometres an hour, dangerous storm tides, and coastal erosion, the Bureau warned.
Life-threatening flash flooding near and south of the cyclone centre may also occur as Alfred approaches the coast late on Thursday and into Friday.
Severe weather warnings and flood watches are in place for South-East Queensland and north-east NSW.
In response, CBA has rolled out emergency assistance for customers and businesses in the area including customised payment arrangements for home loans, credit cards, personal loans, and some business loans.
Loan restructuring for business customers with existing loans and temporary overdrafts will be available.
The bank also committed to waiving fees and charges and offering additional loans or emergency credit limit increases.
It’s subsidiary Bankwest announced its own emergency assistance program that included customised payment arrangements for home loans, credit cards, and personal loans.
It plans to waive fees and charges and will offer loan restructuring for customers with existing loans.
ANZ has launched a similar relief package, offering short-term payment relief on mortgages, credit cards, personal loans, and some business loans.
The major said it would waive fees for restructuring business loans and for customers accessing term deposits early.
Westpac's mortgage, credit card and business loan customers may also apply to defer repayments, according to an announcement from the major bank.
Similarly, National Australia Bank (NAB) is providing credit card and personal loan relief and will waive the establishment fee for restructuring business facilities.
It is also offering reductions and a temporary suspension on home and personal loan repayments, while offering concessional loans to customers seeking support to restructure existing facilities to assist in repairs, restocking and re-opening for business.
The Australian Banking Association (ABA) has said its member banks are all on standby to offer assistance.
ABA CEO Anna Bligh commented: “It doesn’t matter if you’re an individual or a business customer, or both, banks have a variety of options available from repayment deferrals through to loan restructuring to help you get by.
“In the coming days, if you need help from your bank, contact them as early as possible to discuss what tailored assistance can be made available.”
Commenting on loan relief plans, CBA retail banking services group executive, Angus Sullivan, said: “We are closely monitoring the developments of Tropical Cyclone Alfred, and our priority will be to support communities, our customers and employees.
“We are committed to ensuring our customers have access to the necessary assistance and have a variety of options available.”
Speaking about lending relief, ANZ general manager for Queensland and Northern Territory, Jackie Auf der Maur, said: “Given the likely impacts of Alfred, we wanted to provide our customers early notice of our relief measures, so that we offer the essential support and reprieve needed as they navigate this uncertain time.
“We will continue to monitor the situation as it develops, so we can continue to respond and support our customers and staff in the coming days.”
Other lenders and aggregators are also likely to offer assistance to impacted customers and clients as the cyclone hits land later this week.
Aggregators support brokers
Loan Market said its impacted brokers can access off-shore Brokerforce On Demand service for help with key back-office tasks – like managing and organising supporting documents, conducting credit checks for loan preparation and handling data entry – complimentary during this time.
The same service is also being offered to impacted brokers on LMG’s flat fee service model, also during this time.
David McQueen, CEO of Loan Market, said the company’s business continuity planning ensures brokers can keep operating, no matter the circumstances.
“Any affected corporate team members, at Loan Market and LMG, are fully set up to work remotely, and for us, it’s business as usual. We’ve made sure no broker will be left without the support they need to stay connected with their clients,” McQueen said.
“We know times like these can be stressful. That’s why we’re doing everything we can to take pressure off our brokers whether it’s extra service support, a helping hand, or simply being there to check in. We’re a family, and we look after our own.”
[Related: Is insurance the next big challenge for home owners?]
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