Banks are no help for people experiencing financial hardship

The big four banks have a lot to answer for when it comes to they way they treat clients in financial distress said personal debt management company Debt Rescue.

The comments came after the results of the 2012 Rank the Bank Survey conducted by the Financial and Consumer Rights Council (FCRC) showed all four banks ranking poorly in regards to their quality of communication, customer satisfaction, processes and attitudes toward struggling customers.

Debt Rescue believes with 68% of Australians experiencing financial distress, the big banks attitudes are going to have to change.

Debt Rescue operations manager Rachael Witton said she was not surprised by the results as mainstream banks were not forthcoming with hardship provisions when customers find financial difficulty.

“They are obliged by law to offer clients certain provisions to meet their obligations where their circumstances change from the time they initially took out the loan, or credit card,’’ Ms Witton said

“However, time and time again, they are either silent or totally inflexible. They seem like they have one objective only which is to get a repayment from the client regardless of individual circumstances even if it means sending them bankrupt.

Ms Witton said the banks processes and attitudes feel people leaving daunted, isolated, misunderstood and hopeless.

“In the rare cases when clients formally applied for hardship with banks, they were often refused because the application was so daunting and complicated that it couldn’t be filled out properly,” she said.

“Another barrier is dealing with off-shore call centres which can increase feelings of abandonment and isolation for people at a time when they really need to be heard, understood and feel like someone actually cares.”

Debt Rescue said it was helping a growing number of Australians who were getting a rough deal from the banks.

Solutions offered include resubmitting hardship applications in more favourable terms and employing individual strategies to overcome financial difficulties, reduce stress and manage debt obligations.

“In some cases we will lodge a complaint with the Credit Ombudsman Service, providing the client with protection from further collection action until the situation is investigated,” Ms Witton said.

Debt Rescue specialises in personal debt management and can help with debt and provide options for people in financial distress.

Anybody experiencing problems with debt can contact Debt Rescue toll free on:  1800 00 3328 and talk to and Aussie who cares.

For further information visit  www.debtrescue.com.au.