A bank owned by Australia’s biggest superannuation funds has come under fire for silently reducing the amount of money some customers can access during the coronavirus outbreak.
ME Bank is accused of silently shifting out customers’ money available in their home loan redraw facility, according to Nine.
Moving the money into the loan account makes the cash inaccessible for clients during a financially stressful time with the coronavirus epidemic.
Customers complained to Nine that 10 to 50 per cent of their redraw funds were shifted across without any notification from ME Bank.
Yahoo Finance contacted ME Bank but it did not respond.
ME Bank is owned by 16 of the biggest industry superannuation funds in Australia.
Two of the co-owners, AustralianSuper and Hostplus, declined to comment to Yahoo Finance.
Bill Watson, chief executive of co-owner First Super, told Nine that he would demand answers from ME Bank.
“I’ll be seeking an explanation from the bank,” he said.
“Once we’ve received an explanation, we will determine what action needs to be taken from there. As a shareholder, clearly we don’t want to see consumers disadvantaged.”
There is speculation that ME Bank performed the maneuver to reduce its risk of loan defaults during the current economic downturn.
The controversy for smaller player ME comes as all four big banks announced they would deal with any financial hardship compassionately while the entire country is enduring a tough time with the coronavirus restrictions.
Are you a ME Bank customer who had your money shifted? Contact us.
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