Credit Ombudsman Service Limited (COSL) has urged lenders and mortgage managers to be mindful that many borrowers will experience financial difficulties as a result of the Queensland floods.
Raj Venga, the Credit Ombudsman, says, “Flood-affected borrowers may find themselves in default of their loan and incurring default fees and enforcement expenses. Borrowers should also consider approaching financial counselling services and community and consumer credit legal centres. These services are at no cost to consumers.
“If the lender is a member of the Credit Ombudsman Service and has declined or not responded to a request for a hardship variation, the borrower should refer this to us without delay.
“If the lender declines an application for financial hardship relief in circumstances where it should be granted, we can direct the lender to vary the loan payments in the appropriate circumstances.
“Our experience to date suggests that our lender members and mortgage managers are prepared to genuinely consider requests for payment variations.”
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