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Don’t Go It Alone: Lenders advice to caravan finance lockdown customers

The message from banks and non-bank lenders to their customers currently experiencing an extended lockdown is not to try to go it alone in handling your financial situation. Two leading financial associations have issued statements of support to customers and those requiring assistance are encouraged to reach out.

Despite dealing with various coronavirus outbreaks through the first part of 2021, most Australians were likely feeling positive about the national situation achieving some level of normality or at least consistency in regards to restrictions. But recent outbreaks in several states including a very serious and escalating situation in Sydney has highlighted the very real and continuing threat of this pandemic in the community.

While Queensland, the NT and WA have all emerged from snap lockdowns, the Greater Sydney and adjoining areas remain under stay at home orders with cases increasing and an extended lockdown on the cards. It has been acknowledged by both Governments and lenders that the impact of a Sydney lockdown can have serious flow-on effects through NSW regions and the rest of the country. The lending sector has responded swiftly so if you have a current caravan loan and are experiencing financial pressures, support may be available for you.

We have canvassed sources for additional support to provide our customers with the information they may require and will be continuing to monitor the situation and provide our own assistance to our customers currently organising caravan finance.

Australian Banking Association Support

The major banks, the Big 4, were quick out of the blocks to offer support to lending customers at the end of July as soon as the Sydney stay at home orders were put in place. That support has now been extended with the ABA CEO, Anna Bligh, issuing a statement on 8 July with an additional support package. More information here.

While Ms Bligh said that solutions were being tailored by the banks for individual customers, general guidelines were announced in regard to a support package. The key details include:-

  • Customers with loans that need assistance will need to contact their bank and make applications for support in regard to loan repayments.
  • Information in the ABA statement on the association’s website relates to home mortgages and business loans.
  • With no clear indication of what is on offer for consumer finance such as for caravan loans, we encourage those affected to contact their bank. In a TV interview, Ms Bligh did indicate that consumer finance relief was being planned.
  • Support for business loans includes deferring loan repayments for a period of 3 months and the term of the loan extended accordingly.
  • Small businesses with less than $5 million and lending of under $3 million are included.
  • Relief for businesses is for business loans that are currently in good standing.
  • Support also available in regard to fees on merchant terminals, and other fees.
  • Home mortgage deferrals available.

An important aspect that Ms Bligh covered in a media interview was in regard to customers that had previously received deferrals and other support for their loans during 2020. She said that receipt of previous support would not preclude individuals and businesses from receiving this current support package.

The ABA has 22 bank members as it represents financial institutions that hold the official status of a bank. Jade Caravan Finance is accredited with many of these ABA members and we may have arranged your caravan loan with one of these banks. If so and if you require repayment support during this current crisis, you are directed to contact your bank to discuss a suitable arrangement.

Non-Bank Lending Support For Caravan Loans

While banks are members of the ABA, the non-bank lending sector has its own association – the Australian Finance Industry Association. This association has many of our non-bank lenders as members and may include your caravan loan lender.

The AFIA has issued on their website a statement that provides general guidelines as to the type and level of support which its members are offering customers during this current crisis.

The AFIA CEO, Diane Tate, stated that its members were urging their customers to not go it alone during this time but to reach out to their lender if they were experiencing financial difficulties.

Some of the support which may be available to customers includes:-

  • Repayment deferral or a temporary reduction in loan repayments
  • Fee waivers
  • Loan restructure and refinance options
  • Line of credit options

Click to view more on their website here https://afia.asn.au/

Support Action and Caravan Loan Options

The messaging from lenders is strong, clear and direct. Support and relief for customers impacted by the current lockdowns is available and customers should contact their lender directly to discuss the possibilities.

We strongly encourage those in this situation not to delay making contact with their lender as non-payment of caravan loan repayments can have long-term effects. By simply not making monthly loan payments without contacting your lender, can result in a negative entry on a credit score which can stay there for a long time and affect future loan applications. If the non-payment of repayments continues it can result in repossession of the caravan and other negative outcomes.

If you consider that your changed circumstances may be longer-lasting, we invite you to reach out to Jade Caravan Finance to discuss the possibility of refinancing your existing caravan loan to achieve a more workable monthly repayment.

For those that are fortunate not to be impacted by the current outbreaks, we continue our lending services to source and secure cheap caravan finance for both individuals and businesses.

Call 1300 000 003 to discuss a caravan loan with a consultant

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.

 

 

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