Banks piling on problems for those in home loan arrears

Thursday 11 June 2009

Article by Mozo

Consumer groups are scolding the likes of Commonwealth Bank, ANZ and National Australia Bank for enforcing heavy penalties for those struggling to keep up with their home loan payments.

Speaking to the Telegraph, Katherine Lane, principal solicitor at the Consumer Credit Legal Centre, said that banks were "kicking people while they’re down" and creating more hardship at a time when many Aussies are experiencing unprecedented difficulties keeping up with home loan payments.

"Clearly if people can’t afford their mortgage or loans they can’t afford the fees either," she exclaimed, adding that many homeowners are reluctant to tell their bank that they have fallen on hard times as the Australians are a "proud people".

She said that one of her customers who was involved in a car accident has seen a $2,000 dollar home loan debt balloon to a $4,000 deficit as late fees have piled up.

Meanwhile, the CBA has also come under fire this week after it refused to rule out an interest rate hike ahead of the next months’ meeting of the Reserve Bank.

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