Managing Director and CEO at Mystate , Melos Sulicich  joins Dave to explain why Banks are currently  required to review loan payment pauses which started back in March as the Covid 19 Panademic saw many lose their jobs..
With the COVID-19 emergency restrictions now beginning to ease, banks and financial institutions are
set to review the pause in loan repayments offered to customers to assist them through any
immediate financial difficulties.
MyState Bank, along with many other Australian Banking Association (ABA) affiliated banks, moved
quickly to implement a range of measures to help customers manage the impact of COVID-19 and
particularly by providing the option to defer loan repayments for up to six months with a check in
period after three months.
The deferral arrangements were introduced in March. MyState Bank is now contacting all customers
who paused their loan repayments to discuss their circumstances and determine their best approach
moving forward after the initial three months.
With restrictions easing and many people returning to work, their circumstances may have improved
and they may want to resume normal mortgage and loan repayments to avoid the accumulated
interest and fees.
MyState Bank intends to personally contact all affected customers, where possible by telephone, to
discuss their individual circumstances and particularly to gain an understanding of their employment
status, the impact of support payments such as Jobkeeper and other current issues.
The important consideration is that if customers are back at work and some normality has returned,
it’s in their best interests to recommence their loan repayments to avoid any accrued interest on their
mortgage or loan.
Banks remain committed to the promised six-month pause in loan repayments, but it is in customers’
best interests to talk to their financial institution to assess the best way forward in their particular
circumstances.
MyState Bank has a range of options available to support our customers depending on their
circumstances. This includes continuing the repayment pause for a further three months or switching
to interest only repayments or other options that suit their situation. All these options can be
discussed.
It’s certainly in customers’ interests to talk their financial institution to ensure that they are receiving
the appropriate support to best manage their finances through this unprecedented period and
MyState is here to assist.
The number of customers seeking a pause in repayments for MyState Bank’s loan portfolio is in line
with the industry average.
Managing Director and CEO, Melos Sulicich said MyState Bank would continue to strongly support its
customers.“That’s why we want to check-in with our customers to understand their circumstances after the initial
three months and determine the best means of providing support over the next three months and
beyond.”