6 July 2013 – Financial Hardship

On 11 June 2013 Faith Cheok spoke on Heritage FM about CCLSWA’s involvement in Law Week 2013. During Law Week, CCLSWA set up booths, advice clinics, and information sessions, across the metropolitan area.

Faith followed this up on 6 July 2013 by briefly outlining the role of CCLSWA, which is a not-for-profit community legal centre providing free legal advice and information to the WA community in regards to credit and consumer issues.

For the majority of the show, Faith discussed the steps that individuals could take when they have difficulty repaying, or miss scheduled payments, on their home loan. She explained that if someone misses payments on their home loan, their lender can send them a default notice which allows the lender to take enforcement action in court. She advised that upon receiving a default notice, the borrower should act immediately. Faith explained that in such circumstances, individuals may wish to negotiate with the lender, speak with a financial counsellor, or call CCLSWA for advice. Further, she pointed out that if financial difficulties are believed to be temporary, a borrower may make a “hardship variation” with their bank and that if they are not satisfied with the bank’s response, they can complain to either the Financial Ombudsman Service or Credit & Investments Ombudsman. Finally, if financial difficulties are not temporary, it was discussed how surrendering the property or negotiating to sell the property can be an appropriate step.


Michael Duncan