As areas of Queensland and NSW are impacted by yet another serious flood crisis, those affected can seek support and assistance from a range of sources. For those with motor vehicles under finance, flood crisis loan assistance may be available depending on your lender and your individual circumstances. The Australian Banking Association has announced how its members will be supporting loan holders affected by the flood and we provide guidance on what to do and who to approach in regard to different circumstances.
Australian Banking Association Statement
Along similar lines to the support offered to loan holders during the coronavirus crisis, the Australian Banking Association has issued a statement in regard to assistance for flood victims with loan commitments.
The Association’s CEO, Anna Bligh, said that loan deferrals or arrangements for reducing repayments is being offered by individual banks. These cover home loans, personal loans and some business loans. She encouraged those affected to contact their bank to discuss the options available to them.
The support and assistance available will depend on the individual circumstances but may include:-
- Deferring repayments for up to 3 months.
- Waiving charges and fees.
- Consolidation of debt to achieve more manageable repayments.
- Loan restructure with free establishment fees.
- Deferral of credit card repayments.
- Increases in credit limits for emergencies.
- Finance for cash flow issues.
The measures available will depend on individual circumstances and Ms Bligh said these should give flood affected customers some peace of mind in regard to finances.
If you organised your motor vehicle finance through Jade Car Loans, have been affected by the floods and are seeking assistance with loan repayments, you need to contact the bank or lender directly. While this statement has been issued on behalf of Australian banks, it could be expected that many finance companies and other non-bank lenders would offer similar support to their customers.
Those seeking assistance should be aware of the meaning of ‘deferrals’. A deferral is a postponement not a waiver. The repayments will still need to be made on the loan at the forward noted time.
When the banking sector offered similar assistance during the COVID-19 crisis, it was advised that any deferrals of loan repayments would not impact a credit profile as a negative. This is not mentioned in the current media release, it could be presumed the same process would occur but it is advisable to confirm this with your individual lender.
Action for ‘Vehicles under Finance’
For those that have lost a vehicle due to the flood situation and that vehicle is subject to finance, being money is owed on the car, there are steps to be taken. When taking on a secured loan for a motor vehicle, lenders insist that insurance is also taken out on the vehicle. This applies to both personal car loans and to business vehicle finance.
If your car has been written off due to the floodwaters, you will need to contact your insurer as the first step. The insurer will set out how to go about lodging a claim. It is also advisable to contact your lender and update them of your situation. If a loan repayment is due and you fail to meet that payment due to the circumstances it may result in a negative entry on your credit report. Contact your lender asap and advise them of your intentions so appropriate actions can be taken on their part to avert a default being recorded.
When the insurer’s assessor confirms and approves the insurance claim for a written-off car, the payout process can proceed. There are set processes in place which will be followed. As the lender will have a claim over the vehicle and registered under the PPSR system or other, the insurer pays the amount due to the lender. Any additional funds payable would be made to the loan holder.
If you urgently need to replace your vehicle asap and require finance, contact Jade Car Loans to start the loan application process. You should not have to wait until the insurance payout is finalised before applying for a new car loan.
Loans in Progress
If you have been impacted by the flood situation and you currently have a motor vehicle finance application being processed with Jade Car Loans, be assured, the process can still continue. We will be offering continuation of our motor vehicle lending services, including cheap ABN car loans, through the current and any other flood crisis.
This applies across our lending portfolio – Secured Car Loan and business vehicle finance – Chattel Mortgage, Lease and Commercial Hire Purchase.
If your application is in process and the flood has changed your circumstances and you seek to amend your application, contact your Jade Car Loans consultant to discuss the options.
General Flood Victim Support
The Federal Government is offering support for flood victims through the Disaster Funding and support and assistance may also be available through Queensland and NSW state governments.
Talk with Jade Car Loans 1300 000 003 to discuss options with car finance in the event of being impacted by the current flood emergency
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
