CreditSmart - COVID-19 payment pauses and deferral (updated August 2021)
Our focus is on providing support to our lending partners and their customers during this time of uncertainty. Australians impacted by the current COVID-19 outbreak may be able to access further assistance from their lenders to help them get back on track. Australian Retail Credit Association (ARCA) are helping consumers understand the impact of COVID-19 payment pauses.
Consumers can visit the CreditSmart website for more information on how a payment pause or deferral choice could impact their credit report.
Lenders providing assistance to a borrower as part of a COVID-19 support package, should let us know by following the standard hardship and arrears monthly reporting process. Please indicate within your arrears report which accounts are affected by COVID-19.
On the basis that hardship decisions are made in accordance with regulatory guidance and responsible lending practices, QBE LMI will continue to support hardship decisions that are in the best interest of borrowers impacted by COVID-19. The LMI policy will remain in force and any future loss you might incur as the result of a borrower default will be protected by your LMI policy in the usual way.
We have seen examples of lenders applying preferential interest rate terms (e.g. lowest available rate and/or allowing fixed rates to be broken without penalty) to further assist borrowers. We applaud these actions, which we believe to be consistent with community expectations and strongly encourage all lenders to follow suit.
Please contact your Regional Partnership Manager if you have any questions on the assistance you are providing or the reporting requirements.