The flood crisis impacting Queensland and NSW is devastating and the clean-up and recovery process will take a long time. For caravan owners with an RV currently under finance who have been impacted as a result of the floods may be eligible for loan support for flood victims under measures announced by the major banks.
We provide an update on what support may be available to those affected by the floods from the lending sector, what actions you should take if your caravan has been damaged by the floods and what is happening for those with caravan loans currently being processed by Jade Caravan Finance.
Banking Sector Support
The Australian Banking Association represents many Australian banks and as they did during the early stages of the COVID-19 crisis in 2020, the Association has already announced a range of measures available for individuals and businesses that have loans with the banks.
The Association issued the announcement, signed by CEO Anna Bligh which outlines a raft of measures being offered. Individual banks may have varying criteria and eligibility for assistance and as such, Ms Bligh stressed that those affected should make contact with their individual bank to discuss the options which may be available for their situation.
The list of support and assistance covers a range of options which will determined by individual circumstances.
The list includes:-
- Deferring loan repayments for up to a 3 month period
- Fees and charges waivers
- Debt consolidation to achieve more manageable levels of repayments
- Establishment fee waivers for loan restructure
- Deferral of payments on credit cards
- Limits on credit increased to cater for emergency scenarios
- Cash flow shortage finance options
In announcing these measures, Anna Bligh said it should offer peace of mind around finances for those affected by the flood crisis.
Contact Process for Caravan Loans
If you are impacted and seeking loan support and your caravan finance was initially organised by Jade Caravan Finance, you need to contact the bank or lender that your loan has been arranged with. The lender has extended the loan and it will be their decision as to the level of support in regard to loan repayments which is available.
It must be noted that the Banking Association represents banks. However, as it did during the COVID crisis, it would be expected that many non-bank lenders will also make similar measures available to their customers.
It is imperative that if you are not in a position to make your caravan loan repayments due to flood-related issues, you should contact your lender and discuss the situation. Simply letting repayments slip can incur negative reports on a credit profile which can result in bad credit and lower prospects for future loans.
When discussing support measures with banks and non-bank lenders, ensure you are across the detail of what the assistance entails. A loan repayment deferral is not a complete waiver of the loan obligation. The repayments are effectively paused with a deferral and the loan repayment schedule resumed at the agreed time.
This means that if a 3 month deferral is agreed upon, the loan term would be pushed out by an additional 3 months.
Steps for Written-off Caravans under Finance
Images are being shown of many RVs, caravans and even complete caravan parks inundated with flood waters. If you’re caravan or RV is a write-off or irreparable as a result of the flood, there are steps to be taken.
Cheap Caravan Finance Interest Rates
Lenders require caravans to be insured when purchased with cheap caravan finance interest rates. The first calls should be to the insurer and to the lender. Many insurers have an online claim service which may be faster and more easily accessible than phone contact due to the large number of claims being received by insurers.
Your insurer will advise the process that needs to be followed to make an insurance claim on your caravan. Once the claim is lodged, the insurer will arrange the payment to the lender for the amount owing on the loan or the insured amount, whichever is applicable. If the insured amount exceeds the amount owed on the caravan loan, the balance should be paid out to you.
The lender will have lodged their security/interest on the goods on the PPSR when the loan was arranged.
It is also important to contact the lender and let them know what’s happening to avoid missed repayments affecting your credit rating.
If you would like to immediately place an order for a replacement caravan and require finance, please contact Jade Caravan Finance and we will commence the loan process.
Finance Applications ‘In Progress’
If you have been impacted by the flood situation and you have a caravan finance application at various stages of progress with Jade Caravan Finance, the application process will not be impacted. Our team are operating ‘business as usual’ to process loan applications.
However, your circumstances have changed and you need to amend your finance application, please contact your consultant to discuss the options.
Another issue to investigate is in regard to the situation for the caravan manufacturer you are buying from. Brisbane is a major hub for caravan builders and production may have been affected for some brands. Any delays may affect the timing you want for your finances.
Flood Support and Guidance
Government support is available for businesses and individuals who have been impacted by floods as is assistance from charitable organisations. Contact them individually to seek assistance.
If you are currently ‘on the road’, take additional precautions and checks on the route you are planning. Many roads have been destroyed and many others will be seriously damaged. The full extent won’t be obvious until flood waters recede.
To discuss caravan finance matters contact Jade Caravan Finance at 1300 000 003
DISCLAIMER: THE DETAILS AND INFORMATION IN THIS CONTENT ARE PREPARED AND PRESENTED PURELY FOR INFORMATION AND NOT INTENDED IN ANY WAY AS THE SOLE SOURCE OF FINANCIAL ADVICE FOR CARAVAN PURCHASING. IF ADDITIONAL FINANCIAL ADVICE IS REQUIRED, READERS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY ERRORS, PRODUCT DESCRIPTION VARIATIONS, OR OTHER MISREPRESENTATIONS OF INFORMATION AS PRESENTED.