With floods impacting multiple states – Tasmania, Victoria and New South Wales, and with heavy rainfall and possible flooding for areas of South Australia and Queensland possible, many Australians have serious concerns at the moment. To assist with some of those concerns, we provide flood victim support in regard to those worried about their loans and finance.
Many people have been impacted with homes, businesses and property damaged and/or written off as a result of the flooding. When the damaged property or assets – cars, motorbikes, boats, caravans, trucks and equipment, are currently under finance, it can further add to the worry and stress.
We provide flood victim support via information on how to proceed for those that have lost cars, boats, bikes and caravans currently under finance due to flooding and assistance with replacing those goods with new finance. ‘Under finance’ means that the goods have been purchased with a loan which is current and has regular monthly repayments due. In this information, we will refer to ‘goods’ to cover items such as cars, boats, caravans, motorbikes which have been purchased with consumer loans. Similar actions will also apply to businesses that have had trucks, vehicles, equipment and machinery as a result of flooding.
We also advise those that may have pre-approved finance or loan applications currently being processed on what actions they may take if the flood event has resulted in changes to their purchase plans or financial capabilities.
Current Finance and Loan Holders
A condition of secured consumer loans is that lenders require the borrower to take out insurance on the goods. So goods under finance should be insured. Policies can vary, so it is important to check that the policy does cover flood damage.
For those with current loans and the goods are a write-off and/or seriously damaged, these are the actions to take:-
- Contact the insurer as a matter of urgency. These types of flood events result in many calls to insurers with many claims made. The faster that you can lodge the claim may expedite a resolution.
- Where possible, consider lodging the claim online.
- The insurer will advise what steps need to be taken regarding the claim. In some cases, the insurer’s assessor will need to view the goods to confirm they are a write-off.
- The lender that holds the loan has a financial interest in the goods. The lender should be contacted to advise of the situation. The lender will then advise the process from their point of view.
- Despite an insurance claim being lodged, the responsibility remains for the loan repayments to be made unless alternative arrangements are made with the lender. Failure to meet loan repayments can result in a downgrading of a credit score.
- The insurer will process the claim and the lender will be paid the amount they are due.
- Any funds from the claim over the amount due to the lender will be paid to the policy holder.
- It is not necessary to wait until after a claim has been settled before applying for a new loan to replace the goods. Speak with us about the loan options available.
If individuals have goods under finance which have not necessarily been written-off but the flood circumstances have left the individual unable to meet loan payments, they should contact their lender. Most banks and lenders have policies and procedures in place to assist flood-affected customers. This support will vary and the lender will advise individuals what assistance is available to them.
Pre-approved Loans Being Held and Applications Being Processed
For individuals that have pre-approved loans or loan applications currently being processed through Jade Finance and the flood has caused a change in circumstances, please contact us immediately. Pre-approved loans will simply expire as per the conditions.
Loan applications may be paused or halted. Your Jade Finance consultant will advise the procedure and options available for re-applying for finance when the time is suitable to the individual.
Finance for Replacement Goods
Many individuals will be eager to replace written-off goods, particular motor vehicles, as soon as possible. There is not necessarily a need to wait until after the insurance claim has been settled. Contact us to discuss how we can commence a loan application for a Secured Car Loan, Secured Motorbike Loan or loans for other goods.
The finance for the replacement goods would be based on current interest rates, not the rates and conditions which were applicable at the time that the loan was taken out on the damaged goods. Where monies are received from the insurance claim after the replacement goods have been purchased, secured personal loans do allow for extra payments to be made. So that money can be paid towards the loan.
If you have any other questions or issues to discuss on these issues, please feel free to reach out to us for further assistance.
Contact Jade Finance 1300 000 008 for assistance with replacing flood-damaged goods with finance
DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.