Financial Hardship

Orange Credit Union will work with borrowers to determine the most appropriate assistance option for each borrower.

Options include:

• in relation to mortgages, postponing the dates on which payments are due under the contract (with interest to be capitalised into the loan);
• extending the period of the contract and reducing the amount of each payment due under the contract;
• reducing the limit available to customers on credit contracts;
• short term reductions in interest rates, or repayments due under the contract;
• offering different banking arrangements that will better suit the customer’s needs;
• temporary overdrafts on a one-off and temporary basis to suit short-term needs;
• providing interest-only repayment options on loans;
• and providing fee waivers.

These options will be considered in circumstances where the borrower will be able to meet the new repayment terms and will be able to meet their new contractual obligations in the long-run.

• Orange Credit Union will have systems in place to assist in identifying borrowers who may be experiencing financial hardship.
• Orange Credit Union will monitor borrowers and may contact borrowers who default on their contractual obligations. If contacted, Orange Credit Union will explain, in detail, why an individual has been contacted and explain what assistance may be available to the individual if it is found that they are experiencing financial hardship.
• Orange Credit Union may contact customers that exhibit other potential signs of borrower distress, which may include unusual patterns of usage of credit card products and requests for significant increases in credit card limits.

Orange Credit Union will continue to have staff trained to deal with hardship cases in a sensitive and effective manner.

• Orange Credit Union will maintain the mechanisms that are in place to allow borrowers to seek information about hardship assistance.
• Access to information about hardship processes will be open to borrowers without requiring borrowers to provide evidence of their hardship.

• Orange Credit Union will continue to deal with requests for hardship assistance in a timely manner.
• Orange Credit Union will continue to ensure that hardship applications are dealt with as quickly as possible.

Orange Credit Union will continue to provide temporary financial hardship assistance based on information about the borrower’s individual needs:

• Borrowers who apply for temporary assistance may need to provide evidence of financial hardship. This will help Orange Credit Union develop tailored solutions for individual borrowers.
• Evidence of financial hardship can be satisfied through the provision of the following documents that show a change in their personal circumstance; payslips; bank statements; medical certificates; welfare payment statements; or a statement of financial position and/or income and expenditure.

Orange Credit Union will continue to work constructively with borrowers who experience financial hardship and will try to assist borrowers to overcome difficulties meeting their financial commitments.

• Orange Credit Union will do this whether or not the borrower has a right to seek a hardship variation or change under the consumer credit laws.
• Orange Credit Union will continue to consider longer term as well as short-term financial issues when they are relevant. If a member is experiencing longer term difficulties, we will try to develop an appropriate solution with the member to allow them to meet their obligations and improve their financial stability

• Orange Credit Union will continue to act honestly and with integrity, and will treat borrowers fairly and reasonably, including borrowers facing financial hardship.
• Orange Credit Union will continue to act as responsible lenders. We base our lending decisions on a careful and prudent assessment of a borrower’s financial position. We promote the responsible use of credit to our members.