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Loans with nil, nominal or small balances

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Under the Customer Owned Banking Code of Practice, we have made a commitment to act as a responsible lender and comply with responsible lending laws and regulatory guidelines. As a prudent lender, this includes assessing a borrower’s continuing ability to repay a loan without hardship and that the purpose of a loan is appropriate when considering whether to allow a redraw facility to continue where the amount borrowed has been repaid, or there is a small balance remaining.

The following customers with mortgage accounts will receive the following letters:

  • Nil balances – Customers will be sent a letter on 15 June advising that this account has been closed.
  • Small balances (less than repayments) – Customers will be sent a letter in the week starting 17 June asking to repay the final amount owing so we can close the account. Some customers may have their redraw suspended pending full repayment.
  • Nominal Balances – These balances will be written off in the week starting 17 June and their account closed. Customers will receive a letter stating this was completed as the accounts are closed progressively.