Hardship is when a customer is willing but unable to meet their contractual debt obligations because of unexpected events or unforeseen circumstances that impact their ability to meet their requirements under their financial obligations of the contract, for example: changes in employment status (such as losing a job or having hours reduced) or changes in personal circumstances.
This occurs when clients are having difficulty meeting their financial obligations because of one or more of the following:
- Loss of employment
- Significant reduction in hours
- Loss of benefit
- Workplace injury
Emotional hardship may include but is not limited to:
- Death of a partner or immediate family member
- Terminal illness of self or immediate family member
- End of a long term relationship; married or de-facto
- Mental illness
Hardship does not cover:
- Clients who might be facing redundancy
- Those who have to support family members overseas
- Clients who want to cancel
- Misrepresentation by a dealer
- Not understanding the contract
- Taking on a significant debt after the commencement of the contract, ie purchase of a new car (see comments later)
How we can assist:
Our aim is to support financial rehabilitation and long term affordability for our customers. Most often our customers simply need temporary assistance, including a review of their financial commitments, to get them through difficult times.
Our team will consider every request for assistance on an individual basis and will work with you to develop a solution that best meets your circumstances.
These will need to be discussed and assessed on an individual basis.
Those who are claiming financial hardship will be required to provide the following (but not limited to):
- A Financial Position which provides:
- Incomes including benefits & rental incomes
- Supporting evidence for their financial position, including but not limited to:
- Letter of termination
- Notice of redundancy
- Centrelink confirmation of acceptance/loss of employment
- Letter from a doctor or specialist confirming a terminal illness or the inability to work as they may be the major caregiver ie parent of a sick child.
- Two months of bank statements
- Copy of the last credit card statement which must show the limit
- Last loan or hire purchase statement
- Evidence showing that hardship has been applied for with other lenders or creditors
- Utility accounts
- Any investment statement
All clients will be notified of their hardship application outcome by telephone as well as in writing, either by an email or letter which will outline the conditions. These may include: