ACT Chief Minister Katy Gallagher has put banks and utility companies on notice that they should come to the aid of families hit by the Mr Fluffy crisis.
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Ms Gallagher has written to 50 banks, credit unions, insurers, electricity, gas, water and telecommunications companies, asking them to consider fee waivers, concessions and flexibility around charges and repayments while more than 1000 local families get through the buyback and relocation phase of the ACT government's $1 billion rescue package.
On Monday Ms Gallagher will announce at least five key banks have confirmed their support for Mr Fluffy families.
Commonwealth Bank, Members Equity Bank, Beyond Bank, National Australia Bank, and Teachers Mutual Bank are among the first banks to advise the ACT government they will be providing a compassionate response to homeowners.
The five banks' approaches differed, with measures in place ranging from flexible loan arrangements and fee waivers, depending on individual family circumstances. All five were putting in place Mr Fluffy relationship managers to offer special support to homeowners.
The Asbestos Response Taskforce will this week provide homeowners with a formal letter outlining the buyback conditions and their eligibility that they can present to their bank.
The Taskforce said 490 families had already returned their opt-in forms to receive independent valuations for the buyback. Of these, 124 valuations were already under way. More than a dozen families, meanwhile, have already settled on new homes ahead of the buyback with the real estate market experiencing a busy weekend of Mr Fluffy interest.
More than 52 families who have already had to permanently relocate from their homes have accessed more than $2.35 million paid out in financial assistance.
Ms Gallagher said she hoped that once legislation passed the Legislative Assembly on December 4, funds could flow to families from December 8.
In her letters to chief executives earlier in the month, Ms Gallagher said "owners and residents of more than 1000 houses across the ACT have experienced financial, social and emotional impacts not dissimilar to those of a natural disaster as the legacy of this dangerous insulation....
"There will inevitably be further distress, disruptions and, for some, financial pressures as we move ahead. With this in mind I am seeking the support of your organisation where you may have clients or customers facing hardship as a result of this issue.
Following the positive response of five banks, Ms Gallagher said homeowners were now best placed to have discussions with their individual banks on arrangements available.
"Some of these banks have agreed to put in place hardship and relief support similar to that accessed at times of natural disasters. Others will help homeowners service two loans rather than take on bridging finance when purchasing a new home."
The Commonwealth Bank, which provides home loans to an estimated quarter of all Mr Fluffy affected owners, had appointed the same team to help families as it had to assist in the aftermath of the MH17 airline crash and in bushfires and other hardship cases.
Matt Comyn, the Sydney-based head of retail banking services, responsible for 15,000 staff across Australia, became personally involved when a Canberra staff member asked for advice on the situation earlier this month during a staff meeting. He researched the Mr Fluffy issue and that day contacted Fluffy Owners and Residents' Action Group to ask how the bank could help.
ME Bank chief executive Jamie McPhee said he understood many families wanted to move on with their lives quickly. ME Bank had about 50 affected customers and had agreed to lend on their existing Mr Fluffy affected homes using standard lending criteria, and as soon as they join the buyback. "That means they can start looking for and potentially buy a new home as soon as possible," Mr McPhee said.
Beyond Bank Australia chief executive Robert Keogh said, "as a fellow Canberran I am well aware of the terrible legacy Mr Fluffy has left us".
Beyond Bank Australia will offer loans to those affected using their existing Mr Fluffy property as security as soon as they have joined the buyback and will waive any upfront fees and charges associated with the loan.
National Australia Bank and Teachers Mutual Bank also said they were already in close contact with a number of affected members to help them work through the situation.
Fluffy Owners and Residents' Action Group founder Brianna Heseltine welcomed these commitments but noted she had also fielded calls from distressed homeowners who had approached their banks and been denied finance on their homes due to the asbestos contamination.
The group's Facebook page was also naming and shaming banks who had showed a less than compassionate response, with the taskforce forced to intervene late last week for one family whose bank was denying them a deposit bond for a loan until they received the deed of surrender – preventing them from exchanging contracts on a new home.
Ms Heseltine praised IMB Building Society for being flexible and compassionate. She suggested specific ways banks could help all Mr Fluffy families included waiving administration charges, break costs, early repayment and exit and application fees, and facilitating a smooth transition for customers from mortgages on contaminated homes to new properties.
