ME Bank’s mortgage move sparks anger

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ME Bank is accused of transferring accessible withdrawal money to inaccessible loan accounts. (Image: Getty)

A bank owned by Australia’s largest pension 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 transfer the clients’ money available in their mortgage repurchase facility, according to New.

Transferring the money to the loan account makes the money inaccessible to customers during a financially stressful time with the coronavirus outbreak.

Customers have complained New this 10 to 50 percent of their withdrawal funds have been transferred without any notification from ME Bank.

Yahoo finance contacted ME Bank but did not respond.

ME Bank is owned by 16 of the largest industry pension funds in Australia.

Two of the co-owners, AustralianSuper and Hostplus, declined to comment Yahoo finance.

Bill Watson, general manager of First Super co-owner, said New this he would demand responses from ME Bank.

“I will ask the bank for an explanation,” he said.

“Once we have received an explanation, we will determine what action to take from there. As a shareholder, we clearly don’t want to see disadvantaged consumers.”

There is speculation that ME Bank has taken the move to reduce its risk of default during the current economic downturn.

The controversy for the little ME player comes as the Big Four banks have announced that they will face any financial difficulties with compassion as the entire country goes through tough times with coronavirus restrictions.

Are you a ME Bank customer who has had your money transferred? Contact us.

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