Interesting T&C Update From uBank

[House]

We're changing our right to set off and combine accounts

Moving forward, we can use amounts in your UBank deposit accounts to reduce any amount you owe under any UBank branded product, including UHomeLoan (not just amounts you owe to UBank or NAB). We won't, however, set off amounts which are held by you in different capacities (eg, where an account's held by you as trustee).

So they can take your money out of their accounts to pay your debts to them?!

Also dropping direct debit amount from $10k to $2k with no reason given.

 

[bordsilver]

Are they proposing making existing savings accounts an offset account or actually moving the cash? I presume the former which would be good if no account fees.

Reducing the direct debit down to $2K is very restrictive. Is that the new default minimum unless you ask for it to be increased?

 

[Arsenal]

So they can take your money out of their accounts to pay your debts to them?!

I would have thought that is pretty normal. if you owe them money and don't pay your debt, they need recourse and taking money the customer owes them is far better than going through the process, time and costs of selling a property because the customer is slightly behind in loan repayments.

 

[House]

The way it's worded 'we can use amounts in your uBank deposit accounts' says to me that they'll move the cash if they seem necessary. Nothing mentioned about combining accounts. Might be if you're behind on your mortgage payments and they see you have a few K in your deposit account. Just seems a bit ominous to me as that's all that was written about it in the email.

$2k will be the new default minimum though I'm sure if you ask for it to be raised they'll oblige. ANZ were the same, was $2k and had no problems raising it to $10k

 

[Arsenal]

$2k will be the new default minimum though I'm sure if you ask for it to be raised they'll oblige. ANZ were the same, was $2k and had no problems raising it to $10k

I don't get the $2k amount? if you can raise it fine but to me that reeks of limiting losses on avoiding a bank run on funds.

 

[bordsilver]

$2k will be the new default minimum though I'm sure if you ask for it to be raised they'll oblige. ANZ were the same, was $2k and had no problems raising it to $10k

I don't get the $2k amount? if you can raise it fine but to me that reeks of limiting losses on avoiding a bank run on funds.

I thought this was more about limiting exposure to fraudulent transactions.

 

[Greg Williams]

Capitol controls!
Maybe gearing up for a 'bail-In'?

 

[Big A.D.]

$2k will be the new default minimum though I'm sure if you ask for it to be raised they'll oblige. ANZ were the same, was $2k and had no problems raising it to $10k

I don't get the $2k amount? if you can raise it fine but to me that reeks of limiting losses on avoiding a bank run on funds.

I thought this was more about limiting exposure to fraudulent transactions.

In all likelihood, that's the reason behind it, but it's probably also to cut down on their administrative overhead as well.

Direct debits are handled through the Bulk Electronic Clearing System and when someone forgets to cancel a direct debit or the biller doesn't remove them after cancelling a service, the bank has to get involved. There's a big procedures manual for BECS and following it is a pain and takes up staff time.

They've probably worked out that getting BPay to handle a lot of that is cheaper than dealing with it themselves (especially since it's the biller's financial institution that cops the processing fee).

 

[TheEnd]

Maybe times really are getting tougher and the banks are changing their ways?