ASB criticised over Covid-19 processing

ASB has drawn criticism for its handling of Covid-19 mortgage requests, after asking customers to go direct rather than through their adviser.

Monday, April 6th 2020, 9:28AM 2 Comments

ASB has told customers in need of payment holidays and other alterations to their mortgages to get in direct contact, effectively "freezing brokers out" of the process. 

One adviser told TMM Online that ASB was "not letting us deal with the client". The adviser added: "We can't collect information about what the bank wants, about the type of payment holiday the client wants, or the changes they may need."

The adviser said ASB had taken a different approach to its big four rivals.

"BNZ, Westpac, ANZ, are letting us complete diary notes and discuss options, and that is what they want us to do. Those banks are getting in touch with the client to confirm they have spoken to us, and then loading it up to their systems."

Another broker also raised concerns about ASB's methods.

"They are completely freezing brokers out, and this is not what our clients want." 

TMM has asked ASB for comment.

Brokers hope ASB will fall in line with NZ's other banks in the coming weeks. One broker believes ASB is "considering other options" for processing Covid-19 related requests, after listening to advisers' complaints.

Tags: ASB Covid-19 Lending mortgages

« Payment holidays won't affect credit scoresASB reviews Covid-19 process »

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Comments from our readers

On 6 April 2020 at 11:58 am Veteran Charles said:
Same as what ASB did with the refix system some time ago. It makes me appreciate the very good channels available with Westpac and ANZ. I have particularly found ANZ very much open for loan maintenance business as always - by no means slowed-up by the special circumstances.
On 6 April 2020 at 3:48 pm Andy the adviser said:
There are two sides to every sword. Westpac advise people (correctly) to go to their adviser first, the same with Sovereign. However whenever a home loan is put on a payment holiday, the trail stops. So we are effectively doing the bank's job for nothing.

I strongly believe that in times like this the trail SHOULD continue so we can continue to do what is best for the clients and get remunerated for it.

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