Financial hardship
Helping you through financial difficulty
We’re here to help
At MyState Bank, we want our customers to know that we have a dedicated Credit Care Team if you are going through financial difficulties. Whether it is giving you short-term assistance, or setting you up for a longer term, we're here to help.
We understand that things don’t always go as planned. You could have lost your job or regular overtime, your business or investments may have experienced a downturn, your relationship might have broken down or you may have incurred unexpected medical expenses.
In some cases, the problem may not arise from a major event, but instead be the result of difficulties and unexpected expenses over a period of time. Any of these things can put you in a position of financial hardship and make it difficult for you to meet your loan repayments.
What Does ‘Financial Difficulty’ mean?
Financial difficulty means you are unable to repay what you owe, you expect to be unable to pay upcoming repayments, or you are experiencing difficulty meeting your repayment obligations. This can be as a result of an unexpected event or unforeseen changes outside your control including impacts from:
- An illness or injury;
- Loss of employment;
- A pandemic; or
- Natural disasters such as droughts, fires, floods and earthquakes (as declared by an Australian Federal, State or Territory Government) or, is no such declaration is made, where we are satisfied on other grounds that a natural disaster has occurred.
Letting us know
If you are experiencing financial difficulty, then you, or your representative should contact us as soon as possible. We will discuss your situation and the options available to help you. The sooner you contact us, the sooner we can try to help.
By contacting us early, we may be able to put arrangements in place that will assist you in recovering from the changes in your circumstances, and leave your credit rating intact. Early intervention is the key when your financial circumstances change.
If we are working with you to help you respond to financial difficulties, then you can tell us to deal with your financial counsellor or representative — rather than dealing with you. To do this, you will need to give us their contact details in writing. However, we may still deal with you directly in the following situations: if you ask us to; if we have made reasonable attempts to contact or deal with your financial counsellor or representative or if your representative is not a financial counsellor and we reasonably believe they are not acting in your best interest.
If you have a joint account with someone and you are experiencing financial difficulty, then we can assist you. If you ask us to, we can do so without involving the other person initially.
Please don’t hesitate to contact us by calling us on 138 001, option 3.
You can easily apply for hardship assistance online by clicking here:
We will listen to your situation
When you contact us, or are thinking about contacting us, it is important for you to be open, and as realistic as you can be, about your financial position. In turn, we will be compassionate in trying to understand your situation and when discussing any way we can help.
With your co-operation, we will work with you to help you find a sustainable solution to your financial difficulties. Any help we can give will depend on your individual circumstances. We provide help to customers on a case-by-case basis.
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Our financial hardship arrangements focus on situations from which you can recover your financial position. In these situations, we may be able to help you by:
These arrangements may require you to pay more interest over the Loan term. |
Where restoring your financial position is unlikely – meaning it is unlikely that you will be able to meet your monthly repayments again in the near future. A permanent change to your financial situation may mean it is now unlikely that your financial position can be recovered — even if your existing Loan were to be changed. In that case, it may not be appropriate, for us to offer you changes to any payment arrangements under the National Credit Code’s financial hardship process. However, even in these circumstances, we may be able to offer you help — for example, options may include:
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Financial hardship due to gambling
If your financial hardship is caused due to problem gambling, contact our Customer Care team on 138 001 to talk you through your options. This may include restricting online gambling transactions through your MyState Bank Visa Debit card.
Access to confidential and free financial counselling:
You may wish to contact a financial counsellor for free, independent advice about your situation. The National Debt Helpline website (ndh.org.au) has easy to use, step-by-step guides on how to tackle debts. You can also call the National Debt Helpline on 1800 007 007 to talk to a financial counsellor.
For business finances you can contact the free Small Business Debt Helpline service (sbdh.org.au) on 1800 413 828 for independent advice and assistance that may help your situation.
If we are working with you to help you respond to financial difficulties, then you can tell us to deal with your financial counsellor or representative — rather than dealing with you. To do this, you will need to give us their contact details in writing.
Australian Banking Association (ABA) Financial Assistance Hub
For the first time, banks are unveiling an industry-wide Financial Assistance Hub www.ausbanking.org.au/assistance. The site aims to inform and assist bank customers so they know exactly where they stand, and how banks can assist them when they are experiencing financial stress. This support includes clear and constructive information on what people can expect as they handle financial stress and what steps they can take to get out of it.
Many things can lead to financial difficulty, the guidance in the Financial Assistance Hub is designed to help you understand the options that may be available if you are struggling financially. This information is only a guide, so it is a good idea to contact MyState as soon as possible to discuss your situation.
What does financial hardship mean for my credit report?
Prior to 1 July 2022, financial hardship arrangements were not included in the information allowed on customer’s credit reports. As such, a customer’s credit report might have shown that they have missed repayments during a hardship arrangement, even if those missed or reduced payments were agreed as part of a financial hardship arrangement with their lender. Alternatively, some lenders ceased reporting a customer’s repayment history during a financial hardship arrangement. The lack of consistency across lenders led to confusion for customers and banks alike.
From 1 July 2022, the credit reporting system has been clearer, with the introduction of “financial hardship information”. If you agree to a financial hardship arrangement with your bank, your credit report will show that you have made your repayments on time for the period of the arrangement. This is provided you meet the terms of the financial hardship arrangement agreed with your bank.
Your credit report will also include information that indicates you are in a financial hardship arrangement. This information will stay on your credit report for one year and then disappear. Your credit report will not include the reason for your financial hardship arrangement.
The ABA has produced some credit reporting fact sheets and frequently asked questions. You can access these resources here: www.ausbanking.org.au/credit-reporting
Frequently Asked Questions
Yes, you will need to complete our online hardship application in full so we can assess your current financial position and establish how to best provide assistance. Based on your situation we may request supporting documents from you to assess your application, such as;
- Bank statements
- Payslips or employee separation certificate
- Fully executed Contract of Sale or Listing Agreement
- Medical certificate
If we request further information or documents from you to assess your application, you will be given 21 days to provide that to us. If we do not receive this from you within 21 days, it may result in us closing your application due to insufficient information being available to complete our assessment.
Once you have submitted your application on line, one of our friendly Credit Care Consultants will be in touch to review your situation and supporting documents. We will contact you within 7 business days of your application to let you know the outcome or request further information. During the application process we will always talk with you at least once verbally before the application outcome.
While your application for assistance is being assessed, all collections activity will cease. Where your application is approved, no actions will be taken against you in this assistance period we have provided to you.
If we are unable to reach you within the required timeframe or we are unable to obtain the documents required from you we will need to decline the application. If you are unable to provide all the documents, please reach out to us to discuss further.
You can apply for assistance by completing our online hardship application form or contact our friendly Credit Care team on 138 001, option 3, Monday to Friday, 8am to 5pm.
There are many triggers for financial stress and every situation is different. It may be that you are finding it difficult to meet your regular financial commitments like bills, mortgage repayments or school fees. Or it may be that you unexpectedly experience a change in your personal circumstances like redundancy or divorce. These are just a few examples, but the simple answer is, if your financial situation is causing you worry, it’s probably a good enough reason to talk to us. Remember the earlier you approach us for help the better.
During a financial hardship arrangement, your repayment history will show whether you have met the requirements of the financial hardship arrangement (instead of your usual payment obligations). The financial hardship arrangement will be shown as a simple letter code ‘A’ next to your repayment history.
However, please note that financial hardship arrangement does not affect your credit score / rating. Under the law, financial hardship information cannot be used by a credit reporting body to calculate a credit score.
Financial hardship information will only stay on your credit report for 12 months. After that time, it is no longer possible to tell from the credit report that a financial hardship arrangement was in place. Importantly, your credit report will not include the reason for the arrangement.
No. We do not charge any fee or penalty when assisting you in times of hardship.
Bankruptcy is a legal declaration that you are insolvent, that is, you cannot repay your debts. Bankruptcy is listed on the Government Insolvency Register permanently and is also noted on your credit report for between 7 and 10 years. Bankruptcy will hinder your attempts to gain credit (i.e. a credit card or loan) in the future.
You should, wherever possible, avoid bankruptcy due to the long term effects that come with this action. Again, contacting us early will in most cases negate the need for this course of action to be considered.
A debt agreement is a binding agreement between you and your credit provider and falls under Part IX of the Bankruptcy Act 1966. Under a Part IX debt agreement, your credit provider will agree to accept an amount of money that you can afford to pay, over a set period of time, to settle your debts. When a debt agreement is in place, the legal recovery action is suspended and debts, along with interest and charges, are frozen.
A Part IX debt agreement is a form of Bankruptcy. The debt agreement is made public and is recorded on your credit report for a similar term as Bankruptcy.
