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ME Bank 'knew of redraw issue for years'

ME Bank 'knew of redraw issue for years'

As the coronavirus pandemic leads to what could be the worst economic recession in recent memory, a bank cutting off people from their cash – whatever the reason – doesn’t inspire great confidence among its customers.

The ME bank fiasco resulted in about 20,000 customers being hit with an unceremonious reduction in their redraw limit.

The ME bank fiasco resulted in about 20,000 customers being hit with an unceremonious reduction in their redraw limit. Luis Enrique Ascui

Michael RoddanNational correspondent

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In mid-2015, former ME Bank head of home loans Patrick Nolan was handed the results of a survey conducted by the bank that revealed “alarmingly low” levels of financial literacy among Australians.

Included in the results was the fact that 40 per cent of respondents had “no understanding of a redraw facility”.

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Michael Roddan
Michael RoddanNational correspondentMichael Roddan is a Walkley Award-winning national correspondent based in Sydney. He is a former business and economics reporter for The Australian. Connect with Michael on Twitter. Email Michael at m.roddan@afr.com

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Original URL: https://www.afr.com/link/follow-20180101-p54rum