Our support of COVID-19 Financial Hardship Assistance (updated 14 August 2020)
Our focus is on providing support to our lending partners and their customers during this time of uncertainty.
Our support extends to those who are provided with assistance as part of a lender’s COVID-19 support package, this includes but is not limited to:
- deferring or reducing loan repayments (including capitalising arrears)
- switching loan repayments to interest-only
- providing a moratorium on collections action.
When providing assistance to a borrower as part of a COVID-19 support package, please let us know by following your 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.
Borrowers experiencing difficulty meeting financial commitments during this time are strongly encouraged to make direct contact with their lenders.