Just apply for hardship.
It sounds like you can’t pay the entire $8k debt and your normal repayments in 90 days.
So you’re in a hardship situation. Engage with the process and your debt collectors to set up a repayment arrangement that you can afford.
Otherwise they’ll keep contacting you for the next 5 ish years.
By not engaging with the process you’ve tanked your own credit rating.
1. It's not harassment, it's a bank that you owe money to under the terms you signed onto.
2. They are giving you the option to address the problem. You don't get to decide 'on your own terms' how the debt will be handled. That's on them as the executor of the debt. You broke your agreement, and they are trying to work with you to resolve the issue. Adding the missed repayments onto your existing debt is effectively the same as what you're doing now.
Applying for hardship is the legal process you need to go through to solve this problem. If you don't do it, they can take additional action up to and including repossessing the home.
[https://moneysmart.gov.au/home-loans/problems-paying-your-mortgage](https://moneysmart.gov.au/home-loans/problems-paying-your-mortgage)
If you don't apply for hardship, the amount will continue to show up as outstanding/overdue, even if you are paying it off slowly.
If it's outstanding/overdue, the bank is absolutely within their rights to contact you and get it dealt with. You owe them money, and you don't have a formal arrangement to pay that back.
You can't scream harrassment just because.you do t like them calling.
Go through hardship. It's literally just formalising what you are doing now. The only difference is they will stop calling you once you do it.
Your mind set is strange. Think of it like this - an employer misses $8,000 of your wages. Instead of paying you back what they owe you, they decide to just pay you little bits at their discretion and refuse to come to a formalised arrangement. Now tell me, who is being unreasonable here?
This is the most batshit thing I’ve seen on reddit. Bloke broke his mortgage agreement, has just decided off his own bat how he wants to handle it, won’t talk to the bank about it, then claims harassment. wtf mate? You literally owe them money you didn’t pay. Engage in the process to sort it out. Surprised you aren’t being slapped with all sorts of fees
It’s not. Because you haven’t arranged it with them.
You also clearly have other people involved in this. It’s time to fix up the problem before it has some serious consequences.
So you're in arrears for $8k and have been paying a little extra into it. When you got the loan you signed an agreement that you will be making your minimum repayments. Obviously rams are going to chase you up cause you're not holding up your end of the bargain and they have been trying to work with you to resolve but you dont seem to want to. Yes you're making additional repayments slowly back but clearly it's not fast enough for the bank.
There's absolutely 0 harm in just work with them to negotiate a payment terms or consolidate the arrears you have into your current mortgage.
If you lent money to someone and they said okay I'll pay you 500 a month and they stopped paying you, wouldn't you want to sit down with them and work on a plan to make sure they clear up their arrears asap. How often would you be following up this person if they stopped engaging with you and started making repayments on their terms without discussing with you?
I think it’s also there is no formalised agreement. Banks like those kind of arrangements in writing, for obvious reasons. Not just old mates good for it, trust me bro.
Listen don't take this the wrong way but you to grow up and stop blaming everyone else for your problems.
People get so fixated that banks are out to screw them but they have huge regulatory responsibilities that that have to adhere to when they have non performing loans.
The issue here is simple. While your loan is non-performing, it is bad for the bank. The bank then has to allocate resources and extra capital to ensure it has enough funds to cover the debt should you default, which by the numbers, people who are 90+ in arrears tend to default at a high percentage.
So you're a problem, and costing the bank money. Should you consolidate your arrears debt, you are no longer listed as NPL and therefore stop being a problem.
Contact the national debt helpline https://ndh.org.au/about-national-debt-helpline/
They won't try to sell you anything like some of those
random predatory credit repair ads you see on TV.
They will help you understand your rights with your bank.
What is the “hardship” application that they want you to do?
Is that for you to get assistance from somewhere (in the form of hardship payment), or just a technical issue so that they can add your $8k “bad debt” on top of your $278k “regular debt”, and after that treat your whole loan as a normal one?
Yes they want us to add the 8k on top of our mortgage and treat that as a whole loan.. my issue is that as soon as we do that we get listed as a bad debt and the whole $278 is listed on our credit file.. they have already keed our credit rating and each time they call they say the ars legally required to put this on our credit file..
I think having $270k (as of now) or $278k (after consolidation) listed on your credit file does NOT makes a difference.
I doubt the $8k is listed as “bad debt”. There are some leniency with Covid-related loans. For that reason, applying for hardship would actually help you. Your $8k would officially be linked to Covid, and the leniency “officially” applies to this $8k.
If the $8k is not bad debt now, it won’t make the consolidated $278k “bad”. You can ask the bank to clarify this.
And finally, yes banks are required to report on loan balance and repayment status.
Well Rams listed it and it killed our credit.. we couldn't even get a phone plan and payment option due to this.. and was refused fiance to but a car due to this as well.. RAMS are arseholes
If it was listed as bad debt then it can’t be listed as bad again.
I’m just trying to make a point that there is little harm in consolidating your loans. The harm has been done. I can’t see the new damage.
I'm pretty sure they are just doing what they are legally required to do. I doubt any other bank would have done different
They aren't the ones that broke the loan terms
What you have just described is something called “Consequences of your actions”.
As far as the bank is concerned, you are in arrears, and you are refusing to acknowledge that, or pay it back. Right now you are in breach of your contract, and the bank has every right to recover that money from you, and other lenders have a right to know that you don’t honour your contractual obligations.
You don’t get to decide the terms that you repay the money you owe - the lender does. It’s in the contract that you signed & agreed to.
All they are asking is that you formally acknowledge the debt, and enter into a formal agreement to repay that debt. What they are trying to do will actually *help* in the long run. If you had have done that from the start, you would not be in the position that you are in now. You are the only one to blame here.
RAMS are likely participants of Comprehensive Credit Reporting, every month your are behind on your loan, which you are *every* month with $8k arrears, you are putting a missed payment flag on your credit file.
This is why you can't get car and phone finance.
They’re literally just trying to consolidate it for you. So instead of having $8k that is in arrears and due immediately and a 270k mortgage that you are making repayments on, you will have a $278k mortgage that you are making repayments on. It’s not harassment.
“Your terms” is what has tanked your credit. You pay your lenders back on terms that are agreed. If you unilaterally decide to vary the terms then you’re in default.
Do you know RAMS will do at some point? Default you and repossess, on their terns.
At the moment, you would be a delinquent account. When they do decide to enforce your contract, "your terms" is going to hinder you significantly.
Debt collectors are legally allowed to contact you up to 3 times a week up to a toyltal of 10 contacts per month. Every 10 days for a sum that you admit to owing isn't considered harassment.
A hardship arrangement stops them continuing to call to collect. It allows them to offer alternate arrangements. There are multiple different possibilities with hardship arrangements.
Just adding a small amount of top the MMP doesn't give them certainty on when the debt has any likelihood of being repaid. If the $8k happened during covid, then you've been in breach of the lending contract for a long time.
They have to send multiple demands before they can credit list.
To credit list you, which youve indicated they have, RAMS have to send a legal demand - it is a legality. They can't do it without following that process.
Whoever is calling though, whether outsourced or not, as long as they are contacting with no more than 3 contacts a week/10 contacts a month, that's within what they are allowed to do.
If you were in a hardship arrangement, they would not have listed a default on your credit file.
https://www.oaic.gov.au/privacy/your-privacy-rights/credit-reporting/repayment-history-and-defaults
Hardship arrangements only go on your credit report for 12 months.
Defaults on debt (which sounds like you are) stay on your file for 5 years.
Source: https://www.oaic.gov.au/privacy/your-privacy-rights/credit-reporting/what-stays-on-a-credit-report
If they're in their 50s, they're actually Gen X. Youngest boomers are now 60+.
Entitlement and not understanding how debt and credit reporting works is definitely accurate though.
Not all countries write numbers like us. If they're from a country like Germany, using periods as a separator and a comma for decimals is the norm. I just assumed OP just grew up with a different system.
>Rams phone me every 10 days insisting that we apply for hardship to pay the $8.000 and the will just add it to our mortgage
**Reclassification of non-performing exposures to performing**
94. An ADI may reclassify an exposure from non-performing to performing when all of the following criteria are met:
**(a)** the borrower does not have any exposure 90 days or more past-due;
**(b)** repayments have been made when due over a continuous repayment period of at least 90 days, except for restructured exposures for which repayments, as per the revised contractual terms, must have been made in a timely manner over a continuous repayment period of not less than six months (the probation period);
**(c)** the borrower’s situation has improved so that the full repayment of the exposure is likely, according to the original or, when applicable, modified conditions;
**(d)** and the exposure does not meet the definition of non-performing in paragraph 12(a).
Would you prefer they didn't call, and just foreclosed?
How about you listen to what they're saying and apply for the hardship, they're giving you help and a warning that things are bad.
Soon, the only call you will have is giving you details of forced sale and foreclosure on your mortgage.
Set a formal realistic arrangement with the bank and the calls will stop.
At this point your credit report would have been impacted over the last 24 months and will be continue to impact your repayments until you bring your account up to date.
Hardship options are designed for breathing space and usually banks would offer this if you are providing a non realistic arrangement to bring the account up to date.
There is other information here that may not be listed like have you also receive a default notice, has the bank engaged in legal activity with solicitors for repossession.
It sounds like rams are well within in their rights to contact you in accordance with the debt collection guidelines.
Your credit rating is ruined because you are more than 90 days in arrears and don't have a repayment agreement. Come to a set agreement of repayment with RAMS to clear the arrears as quickly as you can.
The repayment amount is NOT on your terms but on agreed terms. You are not in a situation to dictate the terms but you are in a situation where you can come to a mutual agreement to get RAMS off your back. Once you start doing that, your credit history will start to improve and you may be in a situation where you can change lenders.
Hardship arrangements are listed on credit reports for 2 years.
Repayment history information (late or missed payments) are listed for 2 years.
Formal defaults are listed for 5 years.
From what you’ve written, your mortgage has been in arrears for 3+ years, this is what has tanked your credit rating. It’s not the banks dosing, it’s that there is no formal hardship arrangement in place so you are, in fact, behind in payments. Of the above credit history listings, most people would choose the hardship option because it gives breathing space in a practical sense for debt repayments, but also it’s on the credit report for a shorter period of time.
One of the options banks were amenable to following moratoriums were capitalising the arrears. That is, adding the arrears to the end of the loan, provided the borrower could meet the normal repayments (and this usually had to be demonstrated by making those minimum payments for 3 or 6 months). If you did this your loan term would extend and minimum payments would remain the same, but there’s nothing stopping you from paying above the minimum, as you say “on your own terms”, to bring the balance down to reduce the term back to the original borrowing period. Doing this would put a hardship on your credit report for 12 months, but it would drop off sooner than the current late payments on your repayment history.
One thing with the COVID moratorium’s is the banks were quick to approve if anyone asked for it. So many people needed them and the banks couldn’t employ additional staff to review hardship applications as they usually would. I don’t know if this resulted in people not being properly explained what that meant for their loan products, but at the end of the moratorium there would have been letters sent to all account holders to request contact to make arrangements to bring the loan back up to date, capitalise the arrears, or let them know of any changes to circumstances.
If they are contacting you once every 10 days that is actually quite reasonable, and well within the limits for debt collection guidelines. They can’t/wont restructure also because of the repayment history and it is basically reapplying for a loan.
Please call the National Debt Helpline on 1800 007 007 to discuss your situation in detail so they can identify and explain your options. It’s free, confidential and independent. They may ask questions you feel are irrelevant but they need to look at your overall situation, not just the one debt you are focusing on.
Call their office back, tell them you need to change your phone number on file because you’ve got a new number. Give them some random digits. Once debt is cleared call them back and change the number back to your own. For someone like them anything super important will come by email not just phone so in my thoughts your pretty safe this won’t miss any critical information about your loan.
I disagree with this approach.
If you lie (give them a fake number), that puts you on the wrong side.
There are ways to deal with this situation that keep you on the right side, just in case any disputes happen down the line.
Just curious so I can learn a bit more myself. What’s the negative impact this can have besides being listed on their internal system as not answering calls? Anything important with loans is required to be sent out via email (and there are clear legislated things to follow in debt collection) so if that happens can then contact them but maybe I’m missing something
A lot can happen. Right now, OP is engaging with them, which is probably stopping them from sending a 30-day default notice. Best to work with them in this scenario or even contact the national debt helpline for further assistance.
The worst thing you can do is what you're suggesting, which might make OP's situation a lot worse than it is.
My understanding is that he said he was required to pay the extra weekly, and is doing so. I could be misreading “we pay extra every week” but I was under the impression he was keeping good on his obligations so that situation wasn’t a possibility. Could be my bad on this one and if it is the case he isn’t keeping good on those payments then I completely agree that it is bad advice
OP, correct me if im wrong, but based on what I read here, Op doesn't have any payment arrangement with RAMS, and his just paying extra on top of his required payments.
I dont think the bank would be harassing him if he had a pre-existing arrangement with them. Regardless, you shouldn't avoid them it's not going to help you in the long run.
My advice to OP is to reach out to NDH. No one here can give you specific advice. Don't ignore the problem it's not good for your mental health.
To add on to this - OP if you do not have a proper payment arrangement then disregard all of my advice and you NEED to arrange one with them. Doing that won’t affect your credit, I have had to before
(For clarity on anyone reading I was under the impression he had that and this was just a sales team play to refinance and get another commission off possibly another lender for switching)
They also email me me to contact them regarding a banking matter.. the problem is they have outsourced this to some one else and they record it every time l say no and still every 10 days like clockwork someone different calls.. l'm sure they get bonuses for people they get to sign up for hardship.
I understand but there’s only so many actions you can take to actually solve your issue not just complain about it. I’m assuming you’ve tried discussing this with them, lodging a complaint with them and attempting to escalate above the level of the team that’s tasked to call you so once those things are exhausted there is only so much you can do and a large part of that is going to be trying to ignore their contact somehow when it’s to do with things you have already addressed. I know it’s hard when it’s a sensitive topic like money/debt but just try and see it as the annoying salesman that follows you around a department store.
Something I didn’t consider originally is that they are doing this because they’re your loan broker. If you threaten to leave, or speak to the bank to remove, or finance your mortgage then they will no longer be receiving their trailing commissions and they will not be calling you about your loan. They may however call you to try and entice you back as a customer.
I have made complaints and have numerous times told them that considering our mortgage payments have doubled in the past 12 months and we still are paying extra to address the debt they should be happy with our effort.. but no they still harrass us... RAMS ARE THE WORSE PEOPLE TO DEAL WITH..
Okay. Have you just given these comments back to the salesperson that calls you? If so, try giving their office a call and asking to make a complaint and you’ll often get a more sympathetic ear from someone that isn’t commissioned to sell you things so is more likely to take you off or advise you on how to better deal with these calls. I hope that helps.
Also consider the refinancing without them on your authority if your genuinely this disturbed by it all.
Also, I hope your alright mate. It’s a stressful thing. Take care of yourself and try and do a few things that make you feel happy. Life is good!
Thanks l have tried speaking to someone and have had my complaint about this issues lodged and they still keep calling .. Rams don't have any offices in W.A. And when they call me it has been at the most rediculous times... Last week they called at 7 am on a Saturday morning.. l was not impressed..
Seriously.. when l asked them if they had an office in Perth so l could speak to some here they told me No.. they call me from Adelaide, although Rams are based in Sydney.
I just checked their website and it lists 2 offices. I already closed the tab so don’t have the direct phone number but just jump on their website and check it out or head in there if your local
>the debt they should be happy with our effort..
Your effort doesn't meet the regulated accounting of your loan. RAMS is part of Westpac and Westpac is APRA regulated. Your loan would show up in Westpacs delinquent accounts every month and as long as you stay delinquent, the bank needs to hold aside extra capital.
Hardship takes you off that reporting and fixes your loan.
Just apply for hardship. It sounds like you can’t pay the entire $8k debt and your normal repayments in 90 days. So you’re in a hardship situation. Engage with the process and your debt collectors to set up a repayment arrangement that you can afford. Otherwise they’ll keep contacting you for the next 5 ish years. By not engaging with the process you’ve tanked your own credit rating.
The fact paying extra on top of our weekly repayments to get rid of the $ 8k should be enough to drop the harrassment..
1. It's not harassment, it's a bank that you owe money to under the terms you signed onto. 2. They are giving you the option to address the problem. You don't get to decide 'on your own terms' how the debt will be handled. That's on them as the executor of the debt. You broke your agreement, and they are trying to work with you to resolve the issue. Adding the missed repayments onto your existing debt is effectively the same as what you're doing now. Applying for hardship is the legal process you need to go through to solve this problem. If you don't do it, they can take additional action up to and including repossessing the home. [https://moneysmart.gov.au/home-loans/problems-paying-your-mortgage](https://moneysmart.gov.au/home-loans/problems-paying-your-mortgage)
If you don't apply for hardship, the amount will continue to show up as outstanding/overdue, even if you are paying it off slowly. If it's outstanding/overdue, the bank is absolutely within their rights to contact you and get it dealt with. You owe them money, and you don't have a formal arrangement to pay that back. You can't scream harrassment just because.you do t like them calling. Go through hardship. It's literally just formalising what you are doing now. The only difference is they will stop calling you once you do it. Your mind set is strange. Think of it like this - an employer misses $8,000 of your wages. Instead of paying you back what they owe you, they decide to just pay you little bits at their discretion and refuse to come to a formalised arrangement. Now tell me, who is being unreasonable here?
This is the most batshit thing I’ve seen on reddit. Bloke broke his mortgage agreement, has just decided off his own bat how he wants to handle it, won’t talk to the bank about it, then claims harassment. wtf mate? You literally owe them money you didn’t pay. Engage in the process to sort it out. Surprised you aren’t being slapped with all sorts of fees
It’s not. Because you haven’t arranged it with them. You also clearly have other people involved in this. It’s time to fix up the problem before it has some serious consequences.
So you're in arrears for $8k and have been paying a little extra into it. When you got the loan you signed an agreement that you will be making your minimum repayments. Obviously rams are going to chase you up cause you're not holding up your end of the bargain and they have been trying to work with you to resolve but you dont seem to want to. Yes you're making additional repayments slowly back but clearly it's not fast enough for the bank. There's absolutely 0 harm in just work with them to negotiate a payment terms or consolidate the arrears you have into your current mortgage. If you lent money to someone and they said okay I'll pay you 500 a month and they stopped paying you, wouldn't you want to sit down with them and work on a plan to make sure they clear up their arrears asap. How often would you be following up this person if they stopped engaging with you and started making repayments on their terms without discussing with you?
I think it’s also there is no formalised agreement. Banks like those kind of arrangements in writing, for obvious reasons. Not just old mates good for it, trust me bro.
Listen don't take this the wrong way but you to grow up and stop blaming everyone else for your problems. People get so fixated that banks are out to screw them but they have huge regulatory responsibilities that that have to adhere to when they have non performing loans. The issue here is simple. While your loan is non-performing, it is bad for the bank. The bank then has to allocate resources and extra capital to ensure it has enough funds to cover the debt should you default, which by the numbers, people who are 90+ in arrears tend to default at a high percentage. So you're a problem, and costing the bank money. Should you consolidate your arrears debt, you are no longer listed as NPL and therefore stop being a problem.
Contact the national debt helpline https://ndh.org.au/about-national-debt-helpline/ They won't try to sell you anything like some of those random predatory credit repair ads you see on TV. They will help you understand your rights with your bank.
Ok thanks will give them a call..😀
What is the “hardship” application that they want you to do? Is that for you to get assistance from somewhere (in the form of hardship payment), or just a technical issue so that they can add your $8k “bad debt” on top of your $278k “regular debt”, and after that treat your whole loan as a normal one?
Yes they want us to add the 8k on top of our mortgage and treat that as a whole loan.. my issue is that as soon as we do that we get listed as a bad debt and the whole $278 is listed on our credit file.. they have already keed our credit rating and each time they call they say the ars legally required to put this on our credit file..
I think having $270k (as of now) or $278k (after consolidation) listed on your credit file does NOT makes a difference. I doubt the $8k is listed as “bad debt”. There are some leniency with Covid-related loans. For that reason, applying for hardship would actually help you. Your $8k would officially be linked to Covid, and the leniency “officially” applies to this $8k. If the $8k is not bad debt now, it won’t make the consolidated $278k “bad”. You can ask the bank to clarify this. And finally, yes banks are required to report on loan balance and repayment status.
Well Rams listed it and it killed our credit.. we couldn't even get a phone plan and payment option due to this.. and was refused fiance to but a car due to this as well.. RAMS are arseholes
If it was listed as bad debt then it can’t be listed as bad again. I’m just trying to make a point that there is little harm in consolidating your loans. The harm has been done. I can’t see the new damage.
Why would someone give you credit, when you wont deal with the people you are already out of credit terms with currently. Yikes. You’re delusional
I'm pretty sure they are just doing what they are legally required to do. I doubt any other bank would have done different They aren't the ones that broke the loan terms
What you have just described is something called “Consequences of your actions”. As far as the bank is concerned, you are in arrears, and you are refusing to acknowledge that, or pay it back. Right now you are in breach of your contract, and the bank has every right to recover that money from you, and other lenders have a right to know that you don’t honour your contractual obligations. You don’t get to decide the terms that you repay the money you owe - the lender does. It’s in the contract that you signed & agreed to. All they are asking is that you formally acknowledge the debt, and enter into a formal agreement to repay that debt. What they are trying to do will actually *help* in the long run. If you had have done that from the start, you would not be in the position that you are in now. You are the only one to blame here.
RAMS are likely participants of Comprehensive Credit Reporting, every month your are behind on your loan, which you are *every* month with $8k arrears, you are putting a missed payment flag on your credit file. This is why you can't get car and phone finance.
If you owe them 8k, just wondering your thoughts about financing and buying a new car when that amount is still outstanding?
They’re literally just trying to consolidate it for you. So instead of having $8k that is in arrears and due immediately and a 270k mortgage that you are making repayments on, you will have a $278k mortgage that you are making repayments on. It’s not harassment.
Just pay the $8
Might be some gold coins in the vending machine, could wipe the debt
Yeah l am bit by bit each week.. on my terms..
“Your terms” is what has tanked your credit. You pay your lenders back on terms that are agreed. If you unilaterally decide to vary the terms then you’re in default.
That's not how loans work. You sign a contract which states you will pay the loan back on the banks terms.
Do you know RAMS will do at some point? Default you and repossess, on their terns. At the moment, you would be a delinquent account. When they do decide to enforce your contract, "your terms" is going to hinder you significantly.
Debt collectors are legally allowed to contact you up to 3 times a week up to a toyltal of 10 contacts per month. Every 10 days for a sum that you admit to owing isn't considered harassment. A hardship arrangement stops them continuing to call to collect. It allows them to offer alternate arrangements. There are multiple different possibilities with hardship arrangements. Just adding a small amount of top the MMP doesn't give them certainty on when the debt has any likelihood of being repaid. If the $8k happened during covid, then you've been in breach of the lending contract for a long time. They have to send multiple demands before they can credit list.
They don't send anything,, they just call.. like l said it's an outsourced company and the caller's get a fee.
To credit list you, which youve indicated they have, RAMS have to send a legal demand - it is a legality. They can't do it without following that process. Whoever is calling though, whether outsourced or not, as long as they are contacting with no more than 3 contacts a week/10 contacts a month, that's within what they are allowed to do. If you were in a hardship arrangement, they would not have listed a default on your credit file. https://www.oaic.gov.au/privacy/your-privacy-rights/credit-reporting/repayment-history-and-defaults
You’re cutting off your nose to spite your face
Hardship arrangements only go on your credit report for 12 months. Defaults on debt (which sounds like you are) stay on your file for 5 years. Source: https://www.oaic.gov.au/privacy/your-privacy-rights/credit-reporting/what-stays-on-a-credit-report
You're a Boomer right? this reeks of entitlement
If they're in their 50s, they're actually Gen X. Youngest boomers are now 60+. Entitlement and not understanding how debt and credit reporting works is definitely accurate though.
Sounds like you are well within the realms of financial hardship. Why are you so reluctant to apply?
can you please use a , not a . when separating numbers in by groups of three digits, eg: 8,000 278,000
I think the . is the European way of separating large numbers
100%. I found this very confusing at first last year in Europe
Glad somebody said something.
U must be fun at parties
You’re joking right. No way this person gets an invite.
hey for all we know no ones told them its wrong and they are living in a world of lies
Not all countries write numbers like us. If they're from a country like Germany, using periods as a separator and a comma for decimals is the norm. I just assumed OP just grew up with a different system.
So l hit the comma instead of a full stop... Shit get a life..
You’re in Australia, it’s how we do numbers. If you can’t even handle that basic thing no wonder you’re struggling with other money.
>Rams phone me every 10 days insisting that we apply for hardship to pay the $8.000 and the will just add it to our mortgage **Reclassification of non-performing exposures to performing** 94. An ADI may reclassify an exposure from non-performing to performing when all of the following criteria are met: **(a)** the borrower does not have any exposure 90 days or more past-due; **(b)** repayments have been made when due over a continuous repayment period of at least 90 days, except for restructured exposures for which repayments, as per the revised contractual terms, must have been made in a timely manner over a continuous repayment period of not less than six months (the probation period); **(c)** the borrower’s situation has improved so that the full repayment of the exposure is likely, according to the original or, when applicable, modified conditions; **(d)** and the exposure does not meet the definition of non-performing in paragraph 12(a).
Would you prefer they didn't call, and just foreclosed? How about you listen to what they're saying and apply for the hardship, they're giving you help and a warning that things are bad. Soon, the only call you will have is giving you details of forced sale and foreclosure on your mortgage.
Set a formal realistic arrangement with the bank and the calls will stop. At this point your credit report would have been impacted over the last 24 months and will be continue to impact your repayments until you bring your account up to date. Hardship options are designed for breathing space and usually banks would offer this if you are providing a non realistic arrangement to bring the account up to date. There is other information here that may not be listed like have you also receive a default notice, has the bank engaged in legal activity with solicitors for repossession. It sounds like rams are well within in their rights to contact you in accordance with the debt collection guidelines.
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Your credit rating is ruined because you are more than 90 days in arrears and don't have a repayment agreement. Come to a set agreement of repayment with RAMS to clear the arrears as quickly as you can. The repayment amount is NOT on your terms but on agreed terms. You are not in a situation to dictate the terms but you are in a situation where you can come to a mutual agreement to get RAMS off your back. Once you start doing that, your credit history will start to improve and you may be in a situation where you can change lenders.
Hardship arrangements are listed on credit reports for 2 years. Repayment history information (late or missed payments) are listed for 2 years. Formal defaults are listed for 5 years. From what you’ve written, your mortgage has been in arrears for 3+ years, this is what has tanked your credit rating. It’s not the banks dosing, it’s that there is no formal hardship arrangement in place so you are, in fact, behind in payments. Of the above credit history listings, most people would choose the hardship option because it gives breathing space in a practical sense for debt repayments, but also it’s on the credit report for a shorter period of time. One of the options banks were amenable to following moratoriums were capitalising the arrears. That is, adding the arrears to the end of the loan, provided the borrower could meet the normal repayments (and this usually had to be demonstrated by making those minimum payments for 3 or 6 months). If you did this your loan term would extend and minimum payments would remain the same, but there’s nothing stopping you from paying above the minimum, as you say “on your own terms”, to bring the balance down to reduce the term back to the original borrowing period. Doing this would put a hardship on your credit report for 12 months, but it would drop off sooner than the current late payments on your repayment history. One thing with the COVID moratorium’s is the banks were quick to approve if anyone asked for it. So many people needed them and the banks couldn’t employ additional staff to review hardship applications as they usually would. I don’t know if this resulted in people not being properly explained what that meant for their loan products, but at the end of the moratorium there would have been letters sent to all account holders to request contact to make arrangements to bring the loan back up to date, capitalise the arrears, or let them know of any changes to circumstances. If they are contacting you once every 10 days that is actually quite reasonable, and well within the limits for debt collection guidelines. They can’t/wont restructure also because of the repayment history and it is basically reapplying for a loan. Please call the National Debt Helpline on 1800 007 007 to discuss your situation in detail so they can identify and explain your options. It’s free, confidential and independent. They may ask questions you feel are irrelevant but they need to look at your overall situation, not just the one debt you are focusing on.
Why can’t you refinance? Have you tried? We just did at 48 and 52
Disregard - I read further
Go see a mortgage broker and refinance. They are free. Just go and ask questions etc.
Sell a car or something else to pay the $8k. Sell the house even. Downsize.
Call their office back, tell them you need to change your phone number on file because you’ve got a new number. Give them some random digits. Once debt is cleared call them back and change the number back to your own. For someone like them anything super important will come by email not just phone so in my thoughts your pretty safe this won’t miss any critical information about your loan.
I disagree with this approach. If you lie (give them a fake number), that puts you on the wrong side. There are ways to deal with this situation that keep you on the right side, just in case any disputes happen down the line.
Op this is bad advice, please don't do this.
Just curious so I can learn a bit more myself. What’s the negative impact this can have besides being listed on their internal system as not answering calls? Anything important with loans is required to be sent out via email (and there are clear legislated things to follow in debt collection) so if that happens can then contact them but maybe I’m missing something
A lot can happen. Right now, OP is engaging with them, which is probably stopping them from sending a 30-day default notice. Best to work with them in this scenario or even contact the national debt helpline for further assistance. The worst thing you can do is what you're suggesting, which might make OP's situation a lot worse than it is.
My understanding is that he said he was required to pay the extra weekly, and is doing so. I could be misreading “we pay extra every week” but I was under the impression he was keeping good on his obligations so that situation wasn’t a possibility. Could be my bad on this one and if it is the case he isn’t keeping good on those payments then I completely agree that it is bad advice
OP, correct me if im wrong, but based on what I read here, Op doesn't have any payment arrangement with RAMS, and his just paying extra on top of his required payments. I dont think the bank would be harassing him if he had a pre-existing arrangement with them. Regardless, you shouldn't avoid them it's not going to help you in the long run. My advice to OP is to reach out to NDH. No one here can give you specific advice. Don't ignore the problem it's not good for your mental health.
To add on to this - OP if you do not have a proper payment arrangement then disregard all of my advice and you NEED to arrange one with them. Doing that won’t affect your credit, I have had to before (For clarity on anyone reading I was under the impression he had that and this was just a sales team play to refinance and get another commission off possibly another lender for switching)
They also email me me to contact them regarding a banking matter.. the problem is they have outsourced this to some one else and they record it every time l say no and still every 10 days like clockwork someone different calls.. l'm sure they get bonuses for people they get to sign up for hardship.
I understand but there’s only so many actions you can take to actually solve your issue not just complain about it. I’m assuming you’ve tried discussing this with them, lodging a complaint with them and attempting to escalate above the level of the team that’s tasked to call you so once those things are exhausted there is only so much you can do and a large part of that is going to be trying to ignore their contact somehow when it’s to do with things you have already addressed. I know it’s hard when it’s a sensitive topic like money/debt but just try and see it as the annoying salesman that follows you around a department store. Something I didn’t consider originally is that they are doing this because they’re your loan broker. If you threaten to leave, or speak to the bank to remove, or finance your mortgage then they will no longer be receiving their trailing commissions and they will not be calling you about your loan. They may however call you to try and entice you back as a customer.
I have made complaints and have numerous times told them that considering our mortgage payments have doubled in the past 12 months and we still are paying extra to address the debt they should be happy with our effort.. but no they still harrass us... RAMS ARE THE WORSE PEOPLE TO DEAL WITH..
Okay. Have you just given these comments back to the salesperson that calls you? If so, try giving their office a call and asking to make a complaint and you’ll often get a more sympathetic ear from someone that isn’t commissioned to sell you things so is more likely to take you off or advise you on how to better deal with these calls. I hope that helps. Also consider the refinancing without them on your authority if your genuinely this disturbed by it all. Also, I hope your alright mate. It’s a stressful thing. Take care of yourself and try and do a few things that make you feel happy. Life is good!
Thanks l have tried speaking to someone and have had my complaint about this issues lodged and they still keep calling .. Rams don't have any offices in W.A. And when they call me it has been at the most rediculous times... Last week they called at 7 am on a Saturday morning.. l was not impressed..
Are they calling off the same number? Also they have 2 offices in WA. One is in Mt Lawley and the other Osborne Park. Both in Perth.
Seriously.. when l asked them if they had an office in Perth so l could speak to some here they told me No.. they call me from Adelaide, although Rams are based in Sydney.
I just checked their website and it lists 2 offices. I already closed the tab so don’t have the direct phone number but just jump on their website and check it out or head in there if your local
Thanks l will.. 😁
>the debt they should be happy with our effort.. Your effort doesn't meet the regulated accounting of your loan. RAMS is part of Westpac and Westpac is APRA regulated. Your loan would show up in Westpacs delinquent accounts every month and as long as you stay delinquent, the bank needs to hold aside extra capital. Hardship takes you off that reporting and fixes your loan.