Teachers Credit Union today urged people experiencing financial hardship to talk to their lender as soon as possible – with the assurance that as a credit union, they will offer compassionate, constructive help.
“If things have gone pear-shaped, the key is to come to us early – the sooner someone talks to us about any concerns, the sooner we can help them work towards a short or long term solution,” said Steve James, Chief Executive of Teachers Credit Union.
“Whether someone has lost their job, had a relationship breakdown, a sudden illness, or other circumstance that affects them financially, Teachers Credit Union will take the time to understand each person’s situation, provide them with relevant information and assistance to find the best possible way to manage their financial obligations with us,” said Steve James.
Mr James said it was time to explode a few myths about how a lender will treat those who have problems meeting their obligations due to circumstances outside their control.
“I can’t speak for all financial institutions, but credit unions and building societies generally take a more understanding approach to financial hardship – it’s about helping people, not forcing them into bankruptcy to protect our interests.”
“There is also a misconception out there that if you seek assistance in cases of unemployment or other hardship, you’ll be given a bad credit rating. This is not the case. The sooner you ask us to help you, the better the outcome is likely to be, and there is absolutely no penalty for asking for assistance.”
“The risk of a bad credit rating only occurs if you let things slide to the extent where bills and arrears have piled up.”
The credit union has consolidated its long standing commitment to responsible lending and established practice of member support, into a Credit Assistance service to help its members suffering financial hardship through recent unemployment or other reasonable causes.
Teachers Credit Union’s Credit Assistance service has a range of options, and each member is assessed on a case by case basis dependent on individual circumstances. This could include one or several of the following:
- Relief from mortgage or personal loan repayments for a period of up to 12 months (with a corresponding extension in the period of the contract)
- Possible waiver of fees and charges during period payments are stopped
- Consolidation of debts
- Flexible payment arrangements
- Reducing the limit available to members on credit contracts.
Teachers Credit Union’s core member base of teaching and education professionals generally have job security. However, the credit union has noted a small rise in loan defaults and other credit problems since the onset of the current financial crisis.
Find out more information on the Teachers Credit Union Credit Assistance service
Media contact:
Gillian Tatt
Senior PR Officer
email: gtatt@teacherscreditunion.com.au
Phone: (02) 9735 9825
Mobile: 0448 259 942