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.