Overview

At UME Loans we believe in second chances, and we understand that sometimes life can get in the way.

What we have seen for some customers, is that after a period of payment irregularity or difficulty, once they get back on their feet, the next challenge is catching up missed payments. Making sure that your loan doesn’t fall behind is important to do in order to keep you Credit Score healthy. Our Fresh Start Policy, also known as a contract variation, is designed to help those customers that can commit to and make regular direct debit repayments. When a customer can show this intent to stay on the right track, Ume Loans will exercise some flexibility by moving the outstanding arrears amount to the end of your loan which allows you to continue making affordable repayments without the stress of trying to make extra repayments to catch up today.

Our Fresh Start is designed to assist genuine customers who are now able to make regular and consistent repayments after a period of arrears. By offering this policy, we hope to foster a positive solution and build relationships with customers who are looking to re-engage with us, repay their debt and improve their credit rating.

Eligibility

A Fresh Start may be applied to a loan once in a 12-month period.
The customer must have their payment method set to Direct Debit.
Have made three consecutive repayments. These payments must have been received via Direct Debit.
Ume Loans must be of the opinion that the customer can now continue the varied repayments for the rest of their loan term.

Call Us About Your Fresh Start

There are three scenarios in which the Fresh Start Policy may be applicable:

Scenario 1 – A customer in arrears is able to make regular and consistent repayments less than their original loan repayments. E.g. The customer’s original repayments were $100 per week. After missing a number of repayments, the customer is able to repay their loan by $50 weekly repayments. This customer may also require long term assistance due to Financial Hardship, in which case they should be directed to the Financial Hardship application form on our website.
Scenario 2 – A customer in arrears is able to resume regular and consistent repayments of their original loan repayments. E.g. The customer’s original repayments were $100 per week. After missing a number of repayments, the customer is able to resume the original contracted $100 weekly repayments.
Scenario 3 – A customer in arrears is able to make regular and consistent repayments to increase their original loan repayments. E.g. The customer’s original repayments were $100 per week. After missing a number of repayments, the customer is able to resume making payments of $120 per week.

If a customer is outside the above parameters and the account manager believes they may be a suitable applicant for a Fresh Start, an exception may be considered by the Head of Collections.

Policy

As per ASIC’s recent communication (August 2023), an increased number of customers are experiencing financial distress and hardship due to rising cost of living pressures. As a responsible lender, Ume Loans is committed to meeting our obligations under section 72 of the National Credit Code, which stipulates an organisation must consider varying a consumer’s credit contract if a consumer notifies us that they are or will be unable to meet their original credit obligations.

Our financial hardship application policy is listed on our website and encompasses many different types of assistance we can provide to our customers. One of the ways we can assist genuine customers who have the ability to make regular and consistent repayments is through our fresh start policy (although it is not necessary for a customer to be in our financial hardship program to be eligible for a fresh start).

To apply for a Fresh Start with Ume Loans, a customer (currently in arrears) must establish a record of at least three consecutive payments via direct debit, with no dishonours, based on their approved payment frequency. Once these payments have been received and cleared, the customer can have their arrears reset to zero, and these arrears are added to the end of their loan, thereby extending the term of the loan contract. The customer must acknowledge this variation to their original contract in writing. The maximum loan term extension is 12 months.

All Fresh Start applications are subject to management approval.

Variation

Ume Loans reserves the right to vary, replace or terminate the policy at any time.

Call Us About Your Fresh Start