Assisting Borrowers Facing Financial Hardship
Gateway Bank recognise that the deteriorating domestic and international economic outlook will place continued financial pressure on households, as those affected find it more difficult to service housing and personal debt.
It is important that all lenders have clear and effective arrangements to manage borrowers who are facing financial hardship. In particular, lenders should have in place arrangements that assist borrowers who are experiencing temporary financial hardship. Gateway Bank is owned by its Members. Members, as owners, will continue to be treated with care and respect whether or not they are experiencing financial hardship.
Members treated on a case-by-case basis
Members in financial distress are treated on a case by case basis using a range of common remedies and options. These are outlined below and applied depending on the borrower’s circumstances.
Gateway Bank support the Government’s objective of ensuring that all borrowers experiencing financial hardship are treated according to common standards of assistance by lenders. The approach matches the Government’s agreement with the four major banks but reflects the distinguishing features of Gateway Bank, including their mutual status, smaller size, commitment to personal service and their record as responsible lenders.
The Principles, which apply in relation to all consumer credit contracts, establish temporary and standardised arrangements that are designed to assist borrowers that are unable to meet their contractual obligations due to unemployment or as a result of other (reasonable) causes.
How we can help you
Gateway Bank will apply the following principles on a case by case basis to assist borrowers manage their way through temporary financial hardship. In these circumstances, Gateway Bank will support their borrowers in the following ways: