ME Bank reverses course

Fresh from ME:

ME Bank to change back redraw limits on home loans

In response to customer feedback ME Bank has decided to change back home loan redraw limits for any customers who want it.

The bank recently made changes to some older, legacy home loan products which resulted in around 4 per cent of customers having their redraw limit reduced.

The bank acknowledges that this was poorly communicated and has upset customers.

Mr Jamie McPhee, CEO of ME Bank, said, “Some of our customers have told us they want their redraw limits changed back to what they were before.  We are going to do that.

“We have set up a dedicated hotline for any customer who would like their redraw limits changed back or, if they prefer, they can request it online.

“We are deeply sorry; we were trying to do the right thing but we went about it the wrong way.

“I would like to reassure customers that at no point did the bank ‘remove funds from customer accounts’ or ‘transfer’ any customer funds. Nor was the adjustment made for liquidity reasons.

“Our priority now is to help, support and service our customers. We recognise that we need to do better, we can and we will.”

Sensible enough. It will be fun to see the deposit outflows in month-end APRA data.

David Llewellyn-Smith
Latest posts by David Llewellyn-Smith (see all)

Comments

    • ErmingtonPlumbingMEMBER

      Hopefully not too close I’ve got my mortgage with them.
      My business turnover is down so I did the $10,000 withdrawal from my industry super fund and deposited it in my ME account that the mortgage comes out of.
      So its all a bit of a circle isn’t it.

      • Iron HorseMEMBER

        Hi EP,
        – Did you get your credit through the BAS system
        – If you are a P/L entity 1 director/shareholder is entitled to Job Keeper. NB: If you want to claim for April, 2020 you must have done it by today 08/05/20
        PS – I am a small business owner with a P/L structure (not an accountant though!)

  1. Surely that is the driver (deposit outflow) rather than any sense of remorse or the media attention

  2. All that crap for only 4% of borrowers. Sheer incompetence to let that one through.

    • Mining BoganMEMBER

      Indeed. Methinks it will still be wise to continue siphoning funds out of that establishment if that’s their level of thinking.

      A pity though because I’ve been a supporter of them for a long time. But when things change one must change with them.

      • Well it’s not out of the question that they change having learnt from this. They are pretty new to it all. And we do need challengers to the Big 4.

  3. I heard CBA did a similar thing about 2 years ago? No big thing when they did it. Called the “take back” policy.

    • Macquarie has also done it for people who have asked for the mortgage payment pause. Not an unreasonable position to take.

    • Yeah yeah but did they do it without informing them or atleast sent out a letter?

    • We’re with WBC and have a bit of cash parked in redraw. This is us paying about 25% more off ours than we need to to get ahead, so I see it as the bank’s money – wish they’d drop the limit in conjunction

  4. ThomasMEMBER

    So could ME be in financial trouble? What is the situation for mortgage holders if say they went bust??

    • If they go under they take deposits, so it must be that they tear up your mortgage and your are free and clear. I’ve got that right don’t I?

  5. Lucky for them it was their legacy mortgages. Their 200mill plus transformation has removed any ability to make basic config changes on their new banking products.

  6. ThomasMEMBER

    Hi Squirrel – can you explain what you mean – I do not fully understand?