Westpac says it is not going to take cash from accounts linked to its consumers’ home mortgage to assist it lower the danger of home mortgage defaults, no matter the state of the economy.
Bottom line:
- Westpac will not take money from consumer redraw centers
- ME Bank’s decision to do so has actually triggered outrage
- Some Commonwealth Bank clients had loan repayments decreased to the minimum quantity
” It hasn’t even crossed my mind and it’s not something we’ll be doing,” chief executive Peter King said.
Mr King made the remarks after ME Bank outraged customers last week by changing the rules of its redraw facility without warning customers.
Like other banks, ME Bank supplies mortgage clients with access to a “redraw center”.
The facility permits consumers to make additional mortgage repayments above the needed minimum repayments which can then be counted towards an “offered re-draw” which can be drawn throughout emergency situations to pay for things such as house repairs or costs.
However ME Bank– which is owned by 26 market extremely funds– angered cus